Carinthia University of Applied Sciences

School of Management Degree Program Business International Business Management

MASTERTHESIS Social Media Tools for Brand Management

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Statutory declaration

I hereby declare that: I have developed and written the attached thesis independently and without external help. I have used no different sources than those indicated and I have clearly acknowledged any passages, words or ideas, including tables and figures taken from other sources as such and I have not used any external unauthorized help. This paper is in line with the paper graded by the assessors.

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Acknowledgements

Varadin, 26.07.2012.

First of all I thank my supervisor and .... Secondly I would like to thank my friends who helped me get in touch with the interviewed experts when I lost all the hope and also gave me new insights and support. Thirdly I would like to thank all the respondents for their time and interesting answers. Last, but not least, my parents for making this all possible.

Sandra

Abstract in English

Brand is the most valuable asset company has, therefore it should be a top management priority. Value of the brand is defined by brand equity and for that reason company puts in a lot of effort in order to create a long-term relationship with its customers. Before, companies were relaying only on the traditional marketing tools to achieve brand awareness. Nowadays, due to development of the Internet and social media tools, companies marketing departments had to change their way of thinking and acting. There are many social media tools available on the market which helps companies create a better relationship with their customers. Development of Web 2.0 technologies has changed word of mouth communication by allowing companies to detect and comprehend public opinion through online media such as blog posts, collaborative wikis, social networking, tagging, video post and customer ratings and reviews.

Keywords: Band, Management, Social Media, Web 2.0, Marketing Rules

Table of Contents

Preface ........................................................................................................................ 1 1.1 1.2 1.3 1.4 1.5 Initial situation ....................................................................................................... 1 Research Question ............................................................................................... 1 Research Design .................................................................................................. 3 The Methodology .................................................................................................. 5 Master Thesis Structure ........................................................................................ 6

Literature Overview on Brand Management ................................................................. 7 2.1 2.2 2.3 2.4 2.5 2.6 2.7 Introduction ........................................................................................................... 7 Brand Defined....................................................................................................... 7 Brand Equity ......................................................................................................... 8 Customer-Based Brand Equity.............................................................................. 9 Building Customer-Based Brand Equity .............................................................. 10 Managing Brand Equity ...................................................................................... 13 Sources of Brand Equity ..................................................................................... 13 Brand Awareness ........................................................................................ 14 Brand Image ................................................................................................ 17

2.7.1 2.7.2 3

Literature Overview on development of Web 2.0 and Social Media............................ 19 3.1 3.2 3.3 Introduction ......................................................................................................... 19 Development of Web 2.0 and Social Media ........................................................ 20 Social Media Defined .......................................................................................... 23 Attributes of Social Media ............................................................................ 24 3R of Social Media ...................................................................................... 25

3.3.1 3.3.2 3.4

The Elements of Social Media ............................................................................ 27 Social Media Engagement ........................................................................... 27

3.4.1 3.5

Social Media Tools ............................................................................................. 30 Blog ............................................................................................................. 31

3.5.1

3.5.2 3.5.3 3.5.4 3.5.5 3.6 4

Micro blogs .................................................................................................. 32 Social Networking ........................................................................................ 34 Media sharing (Content Communities) ......................................................... 38 Others.......................................................................................................... 39

Technologies within Web 2.0 .............................................................................. 46

The Impact of Internet and Social Media on Brands ................................................... 48 4.1 4.2 Introduction ......................................................................................................... 48 Changes in Marketing Rules ............................................................................... 49 The Old Rules of Marketing ......................................................................... 49 The New Rules of Marketing........................................................................ 51

4.2.1 4.2.2 4.3

Branding in the Digital Age ................................................................................. 54 Social Media Marketing ............................................................................... 56 Changes in Customers Behavior and Environment ..................................... 59 Electronic Word of Mouth............................................................................. 62 The Long Tail of Marketing ........................................................................ 63

4.3.1 4.3.2 4.3.3 4.3.4 5 6

Recommendations ..................................................................................................... 66 Conclusion ................................................................................................................. 69

Bibliography ...................................................................................................................... 70 Appendix........................................................................................................................... 77

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List of Figures

Figure 1: Research Design ................................................................................................. 4 Figure 2: Customer-based brand equity pyramid .............................................................. 12 Figure 3: Components of Brand Knowledge...................................................................... 14 Figure 4: The Awareness Pyramid .................................................................................... 15 Figure 5: Brand Awareness Characteristics ...................................................................... 16 Figure 6: Brand Image Characteristic ................................................................................ 18 Figure 7: Development - Web 1.0 to Web 2.0 ................................................................... 21 Figure 8: The Social Media Starfish .................................................................................. 27 Figure 9: LENiE Model ...................................................................................................... 28 Figure 10: Engagement Cycle ........................................................................................... 29 Figure 11: Social Media Landscape .................................................................................. 31 Figure 12: 1:n Traditional Communication Model .............................................................. 50 Figure 13: The New Communication Paradigm ................................................................. 51 Figure 14:1:1 Communication Model ................................................................................ 53 Figure 15: n:n Communication Model ............................................................................... 54 Figure 16: Then: The Funnel Metaphor ............................................................................. 55 Figure 17: Now: The Consumer Decision Journey ............................................................ 56 Figure 18: The Classical Purchase Funnel........................................................................ 57 Figure 19: The Social Feedback Cycle ............................................................................. 58 Figure 20: The Long Tail ................................................................................................... 64

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List of Abbreviations

AMA American Marketing Association EIU Economist Intelligence Unit eWOM electronic Word of Mouth GIS Geographic Information System IMC Integrated Marketing Communication OWOM Online Word of Mouth PR Public Relations UGC User Generated Content UGC user generated content WOM Word of Mouth

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1 Preface
1.1 Initial situation

Brands are one of the most valuable assets companies have, as well as an important value creator and should therefore be the top management priority. Traditionally, branding has been about defining a clear identity and positioning, implementing marketing programs, and sustaining and growing the brand equity.1 The wide expansion of Internet usage has brought many changes to the marketplace and this has affected the value of brands and the way brands should be managed. In the last years the development of 2.0 Web and social media has affected brands, and the rapid increase in usage of social media.2 The main focus is on the questions what kind of social media tools are available to the brand owners/companies in Croatia to increase brand awareness, and how well the potential that social media tools bring is exploited.

Croatia is quite a young, not highly developed market in terms of social media. Companies mainly prefer to stick to the old-fashioned way of introducing their product or service to the customers. In the last four years the situation in the market goes in favor of social media. Mostly young people recognized the opportunity and the potential of social media tools.

1.2 Research Question

Social media and the usage of social media tools is widely discussed, but it is interesting to explain how it is used in real life to increase brand awareness and how companies can use the potential and opportunities social media tools bring. This Master Thesis will provide concrete information on the development of Web 2.0, changes in the environment and changes in customer perception. Furthermore, the detailed overview of the range of tools available will be given. Social media tools are used by brand owners to build up the relationship with customers, to strengthen the brand image and to communicate with customers more efficiently.

1 2

Aaker (1991), p. 7ff. Cf. OReilley (2005), p.1., Cf. Zarella (2010), p. 8.

The focus of the Thesis is on brand management and how the branding is different after the Internet and web have developed and social media tools have become popular among brand owners. The Thesis will focus on Croatian agencies which are implementing social media tools to improve companys relationship with customers, to strengthen the brand image and to communicate with customers more efficiently. The aim of this Master Thesis is the creation of a theoretical sketch for real life applicability of social media tools for brand management with the focus on Croatia. One of the most effective ways to achieve customer loyalty is implementation of social media tools. However, the technical development is not the focus of the Thesis but the variety of available tools and the choice of the right one for a specific company.

In the following part there are main questions and sub questions of the Thesis: What kind of social media tools can companies use to strengthen the brand image and how can they use social media tools? Has the Internet affected the marketing environment and how has it eventually changed brand management? Is the branding different, and how? What kind of social media can be best used to increase brand awareness?

1.3 Research Design

The concept of the Master Thesis is explained in Research design chapter. The Master Thesis is divided into two main parts.

In the theoretical part the literature research on relevant online media, books, journals and research reports within the focused topics of brand management and social media are carried out. The changes in communication and the way of promoting brands on the Internet by using social media tools is going to be explained with the aim to understand the progress and the theory of brand management and social media. Based on the literature and gained knowledge, the second part focuses on the interviews with Croatian experts involved in the process of social media tool implementation. The practical knowledge of the experts in the field of brand management and social media should answer the research question, to discover existing social media tools and their best usage. After the theoretical analysis and the interviews, possible social media tools will be identified to build up the relationship with customers, to strengthen the brand image and to communicate with customers more efficiently and a recommendation for the practical usage will be given.

Figure 1: Research Design

Source: Own creation

1.4 The Methodology

The methodology chosen to answer research questions are in-depth interviews. Interviews are considered to be the most significant source of evidence. Interviews rely on the communication between research participants and the researcher. They are used as a good and quick way to collect information or data from several people. The purpose of interviews is to get a story, opinion or experienced situation.4 Blumer creates a basic assumption that the meaning people make of their experience affects the way they carry out that experience.5 For the purpose of interviews I have provided open questions for experts working in social media branch. (See appendix) All the interviews with experts were done in Croatia and the main reason is that the international focus was requested. The main interest was to answer the research question and find out what social media tools are available in Croatia and how companies can use those tools for increasing brand awareness. I was also interested in changes which happened in Croatian market regarding the development of the Internet and social media, and how these changes have effected brand management as well as how they were accepted and perceived by Croatian companies. Therefore, I did 6 in-depth interviews with Croatian experts who work in Croatian agencies that deal with implementation of social media. The collected data, i.e. the answers on the interview questions are implemented in the theory as evidence that supports the theory, and besides general knowledge they give an overview of what the situation is really like in Croatia. The proposed conclusions and recommendations are based on the combination between the findings from the interviews and the research in the literature.

4 5

Cf. Seidman (2006), p.7ff. Blumer (1969), qtd.in: Seidman (2006), p.10.

1.5 Master Thesis Structure

In this section I will provide an overview of the thesis content. The thesis is structured as follows: Chapter 1 gives information on the initial situation and the research question which has to be answered in the current thesis. The overview of the research design is also both, explained and graphically illustrated. In the methodology section the importance and meaning of interviews is explained. Chapter 2 follows with the explanation of a brand and brand equity. The importance of customer-based brand equity is also explained and gives the information on brand building and managing brand with an aim to achieve greater awareness. Furthermore, sources of brand equity are mentioned. Chapter 3 follows with the development of Web 2.0 and social media. Furthermore, the development and the differences between Web 1.0 and Web 2.0 are shown. The social media is explained as well as its attributes, elements and social media engagement. The sub-chapter 3.2. gives an overview of the available social media tools and it contains explanation how they can be used for businesses. Chapter 4 gives a summarized overview of what differences have been made in brand management due to the development of the Internet. The traditional communication model and the new communication paradigm are compared. It follows with the description of how the development of social media influenced brands. It gives the information on changes in the communication pattern, changes among consumers etc. Chapter 5 gives the general recommendations for Croatian companies and in chapter 6 the conclusion is presented.

Literature Overview on Brand Management

2.1 Introduction

The following section contains a review of brand management. It is most important to define brand, since brand management begins with having knowledge of the term brand. Brand management can be described as nothing but a way of creating and sustaining the brand. Branding enables customers to distinguish one product or service from competitors products or service. Brand gives particular information about the product or service to the customer and it differentiates those goods or services from those of competitors. Brand equity represents the value of the brand. It is driven by consumer behavior, and consumer behavior is driven by perceptions of a brand. Brand equity is determined by brand image. Brand awareness defines how well customers are familiar with the brand, it includes brand recognition and brand recall. Brand image is a set of specific beliefs and attitudes towards some brand, in other words, it is customers perception of the brand and all associations connected to the specific brand. We can say that brand associations form the brand image.

2.2

Brand Defined

Over the last decade brand has been defined in many different ways, which mainly depends on the perspective from which the brand is perceived. Dramatic shifts had the influence on the authors and constant review as well as on redefining the role of a brand. In the classical definition the brand is connected with the identification of the product and differentiation from its competitors, brand is the name, associated with one or more items in the product line, which is used to identify the source of the item(s).6 The American Marketing Association (AMA) definition of a brand is a name, term, sign, symbol, or design, or a combination of them, which is intended to identify the goods and services of one seller or a group of sellers and to differentiate them from those of competitors.7 The legal term for brand is trademark. A brand may identify one item, a

6 7

Kotler (2000), p.396. Kotler and Keller, (1997), p.274.

family of items, or all items of that seller. If used for the firm as a whole, the preferred term is trade name.8 Keller recognizes that brands today are much more than defined in classical brand definition. He says: technically speaking, whenever a marketer creates a new name, logo, or symbol for a new product, he or she has created a brand; however, he recognizes that brands are much more than that.9 Keller points out the deficiency in the classical perception of the brand. In order for a brand to be considered a brand it has to gain certain amount of awareness, reputation and preeminence. Aaker defined brand as a distinguishing name and/or symbol intended to identify the goods or services of either one seller or a group of sellers, and to differentiate those goods or services from those of competitors.10 Kapferer also points out that the AMAs definitions is limited in sense of brand management and defines brand as a set of mental associations held by a consumer, which add value to the perceived value of a product or service.11 This extension of the AMA's classical definition leads to connection between brand management and developing brand value e.g. brand equity.

2.3 Brand Equity

Brand equity tries to define the relationship between customers and brands. It defines the value of a brand and emphasizes the importance of having long-term focus within brand management. Brand equity has been examined from financial and customer-based perspective either individual or organizational. This present section will focus on customerbased brand equity which refers to the consumer response to a brand name. Kotler defines brand equity as the added value endowed to products and services. This value may be reflected in how consumers think, feel, and act with respect to the brand, as well as the prices, market share, and profitability that the brand commands for the firm.

8 9

AMA (2012), [online]. Keller (2003), p.3. 10 Aaker (1991), p. 7. 11 Keller qtd.in: Kapferer (2004), p.10.

Brand equity is an important intangible asset that has psychological and financial value to the firm.12 Aaker defines brand equity as a set of brand assets and liabilities linked to a brand, its name and symbol that add to or subtract from the value provided by a product or service to the firm and/or to that firms customers.13 Kotler's definition takes into account only one level of brand equity, a firm-based perspective, whereas Aaker's definition takes into account both; a firm-based perspective and a customer- based perspective. Biel claims that brand equity deals with the value, usually defined in economic terms, of a brand beyond the physical assets associated with its manufacturer or provision.14 We can think of brand equity as a premium a consumer is ready to pay for a branded product or service compared to an identical unbranded product or service. As mentioned above, brand equity is ultimately driven by consumer behavior, and consumer behavior is driven by perceptions of a brand. In general, brand equity is driven by brand image.15

2.4 Customer-Based Brand Equity

According to the literature, Keller and Aaker can be considered the main contributors to the customer-based brand equity perspective. Aaker clams that brand-equity assets generally add or subtract value for customers.16 In other words, brand equity assets can help customers to interpret process and store huge quantities about products and brands.17 Consumers are the ones who actually experience the brand; after they have experienced it they create a subjective perception of the brand. Customer-based brand equity is defined by Aaker and Biel: A consumer perceives a brands equity as the value asses to the functional product or service by associating it with a brand name.18

12 13

Kotler and Keller (1997), p.276. Aaker (1991), p.15. 14 Biel (1992), p.6. 15 Cf. Biel (1992), p.6.ff. 16 Aaker (1991), p.16. 17 Aaker (1991), p.16. 18 Aaker and Biel (1993), p.2.

Keller claims the power of a brand lies in what customer have learned, felt, seen and heard about the brand over time, e.g. the power of the brand resides in the minds of customer.19 He also defines customer-based equity as the differential effects of brand knowledge on customer response to the marketing of the brand.20 Furthermore, he views customers-brand based brand equity as a process that occurs when the customer is familiar with the brand and holds some favorable, strong, and unique brand associations in memory.21 Brand knowledge is the key for creating brand equity. Kapferer concluded that the power of brands lies in the minds of existing or potential customers and what they have experienced directly and indirectly about the brand.22

2.5 Building Customer-Based Brand Equity

The power of a brand lies in the minds of customers; therefore the challenge for marketers in building a strong brand is to ensure the right type of experience with the product or service for customers. For marketers and their marketing programs the most important issue is that customers get the right thoughts, feelings, images, beliefs, perceptions and opinions which are linked to the brand.23 Building brand equity requires the creation of a familiar brand that has favorable, strong, and unique brand associations. This can be done both through the initial choice of brand identities, such as a brand name, logo, or symbol, and through the integration of brand identities into the supporting marketing program. The marketing communication efforts by the firm shape consumer perceptions of the product or service. Marketing communication may also be helpful in increasing user and usage imagery attributes. Word of mouth and other social influences also play an important role.24

19 20

Keller (2001), p.3. Keller (1998), p.45. 21 Cf. Keller (2003), p.67. 22 Cf. Kapferer (1997), p.38. 23 Cf.Keller (2001), p.3. 24 Cf. Keller (1993), p.9f.

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The choice of brand elements

Before brand building, it is necessary to make a choice of possible brand elements that enhance brand awareness and desired associations. The choice of brand elements while building brand equity plays an important role. Brand elements are trademark devices that help customers to identify and differentiate a brand (names, logos, symbols, URLs, characters, slogans, spokespeople, jingles, packages etc.). Keller named six main criteria for choosing brand elements: Memorability Meaningfulness Likeability Transferability Adaptability Protectability.25

Aaker is mainly focused on the name, symbol and slogan. He claims that the name is the core and basic indicator for a brand and it also creates the basis for creating brand awareness and communication. In situations when it is difficult to recognize a product or service the symbol is helpful in building brand equity. A slogan can also be helpful in situations where the name or symbol has some limitations since it also affects awareness.26 He proposed seven criteria for name selection: 1. Easy to learn and remember it is helpful if it is unusual, interesting, meaningful, emotional, pronounceable, spell-able, and / or if it involves a visual image. 2. Suggest the product class so that name recall will be high while still being compatible with potential future uses of the name. 3. Support a symbol or slogan. 4. Suggest desired associations without being boring or trivial. 5. Not suggest undesired associations it should be authentic, credible, and comfortable and not raise false expectations.

25 26

Keller (2003), p.173. Cf. Aaker (1996), p.196.

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6. Be distinctive it should not be confused with competitors names. 7. Be available and protectable legally.27

The brand building process

To build a strong brand, according to customer-based brand equity model, four main steps have to be accomplished. 1. Ensure identification of the brand with customers and an association of the brand in customers minds with a specific product class or customer need. 2. Firmly establish the totality of brand meaning in the minds of customers by strategically linking a host of tangible and intangible brand associations with certain properties. 3. Elicit proper customer responses to this brand identification and brand meaning. 4. Convert brand response to create an intense active loyalty relationship between customers and the brand.28 These four steps can be used to create brand identity, brand meaning, brand response and brand relationship. Building block by block, e.g. six brand-building blocks, gives the result of the consumer-based brand equity pyramid.29

Figure 2: Customer-based brand equity pyramid

30

27 28

Aaker (1996), p.196. Keller (2001), p.5. 29 Cf. Keller (2001), p.5. 30 Source: Keller (2001), p.7.

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2.6

Managing Brand Equity

Intangible assets and liabilities on which brand equity is based on can be grouped in five different asset dimensions. These assets include: Brand loyalty Name awareness Perceived quality Brand association in addition to perceived quality, Other proprietary brand assets, patents, trademarks, channel relationships, etc.31

If those assets are managed in the appropriate way, they add value to the product or service and create customer satisfaction, which in the other hand provide a variety of benefits for the company.32

2.7 Sources of Brand Equity

Customers-based brand equity occurs when the customer has a high level of awareness and familiarity with the brand and holds some strong, favorable, and unique brand associations in memory.33 To create a brand equity customer must see the significant difference among brands. Keller sees the role of customer-based brand equity measurement as a tool to understand the different types of marketing elements and the ways they affect the value of a brand. He says that brand knowledge is created in the minds of the consumer by marketing activities.34 He defines brand knowledge as all the thoughts, feelings, perceptions, images, experiences and so on that become linked to the brand in the minds of consumers.35 Keller divides brand knowledge into two different components, brand awareness and brand image. He defines brand awareness as a relation to the strength of the brand node or trace in memory as reflected by the consumers ability to recall or recognize the brand
31 32

Aaker (1991), p.16. Cf. Aaker (1991), p.17. 33 Keller (1988), p. 50. 34 Cf. Keller (2009), p.142f. 35 Keller (2009), p.143f.

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under different conditions. Brand image is defined as consumer perceptions of/and preferences for a brand, as reflected by the various types of brand associations held in the consumers memory.36 Strong associations and a unique brand identity are important as a preference which can operate as source of brand equity. This can improve brand awareness, price premiums, communication, and channel effectiveness as well as enhance growth opportunities for a brand.37

Figure 3: Components of Brand Knowledge

38

2.7.1

Brand Awareness

Brand awareness is the ability of a potential buyer to recognize or recall that a brand is a member of a certain product category.39 Brand awareness involves a continuum ranging from an uncertain feeling that the brand is recognized to a belief that it is the only one in the product category.40 The main role of brand awareness in brand equity depends on the context and achieved level of brand awareness.

36 37

Keller (2009), p.143. Cf. Keller (2009), p.143. 38 Source: adapted from: Keller (1998), p.69. 39 Aaker (1991), p.61. 40 Cf. Aaker (1991), p.62.

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Brand awareness creates value in different ways. Brand awareness provides the anchor to which other associations can be linked. According to Aaker brand awareness consist of three main levels, brand recognition, brand recall, and top-of-mind awareness.41 Brand recognition provides the brand with a sense of familiarity and people like the familiar. In the absence of motivation to engage in attribute evaluation, familiarity may be enough. Brand awareness can be a signal of substance. The first set in the buying process is often to select a group of brands to consider. Brand awareness can be crucial to getting into this group.42

Top of Mind

Brand Recall

Brand Recognition

Unaware of Brand

Figure 4: The Awareness Pyramid43

According to Keller brand awareness consists of two main types, brand recognition and brand recall. Brand recognition is defined as customers ability to confirm prior exposure to the brand when given the brand as cue.44 Keller relates brand recall to consumers ability to retrieve the brand from memory when given the product category, the needs fulfilled by the category or a purchase or usage situation as a cue.45 According to Keller brand awareness can be characterized by depth and breadth, whereas depth of brand awareness concerns a situation where the brand has deeper brand awareness than the one that only can be recognized, therefore a brand can be easily recalled. On the other hand, the breath of brand awareness concerns the range of
41 42

Cf. Aaker (1991), p.62. Aaker (1991), p.63ff. 43 Source: Aaker (1991), p.62. 44 Keller (1998), p.88. 45 Keller (1998), p.88.

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purchase and usage where the brand element comes to mind. It depends on products knowledge in the memory.46

Figure 5: Brand Awareness Characteristics

47

There are three major reasons why brand awareness plays an important role in a consumer decision making. First, it is important that consumers think of the brand when they think about the product category. Raising brand awareness increases the likelihood that the brand will be a member of the consideration set. Second, brand awareness can affect decisions about a brand in the consideration set. In low involvement decision settings, a minimum level of brand awareness may be sufficient for a product choice, even in the absence of a well-formed attitude. Finally, brand awareness affects consumer decision making by influencing the formation and strength of brand associations in the brand image.48 Aaker and Keller concluded that brand awareness cannot create sales by itself, its a necessary step in creating brand equity but it is not sufficient. Therefore, its not wrong to say that brand awareness has limitations, although its a key of brand asset.49

46 47

Cf. Keller (1988), p.88. Source: adapted from: Keller (1998), p.69. 48 Cf. Keller (1998), p.91f. 49 Cf. Aaker (1991), p.69., Cf.Keller (1998), p.92.

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2.7.2

Brand Image

Brand image is defined as perceptions about brand as reflected by the brand associations held in consumer memory.50 Brand associations are the other informational nodes linked to the brand node in memory and contain the meaning of the brand for consumer.51 Brand associations consist of all brand-related thoughts, feelings, perceptions, images, beliefs, attitudes and it is anything linked in memory to a brand. They represent the basis for a purchase decision.52 The strength, favorability, and uniqueness of brand equity play an important role when customers decision making is present. The level of abstraction can help to distinguish a brand association. Brand associations can be classified into three categories; attributes, benefits and attitudes. Attributes are descriptive features that characterize a product or service, in other words, attributes stand for what customers think that the product or service is or has.53 Benefits are the personal value and meaning that customers attach to the product or service attributes, they stand for what customers think the product or service can do for them.54 Brand attitudes are highest-level of brand associations and are defined in terms of consumers overall evaluations of a brand, they are considered as the basis for further actions and behaviors that consumers take with the brand.55 Regardless the type of brand association involved, that make brand image can be characterized according three main dimensions: Strength How strongly is the brand identified with a brand association? Favorability How important or valuable is the brand association to customers? Uniqueness how distinctively is the brand identified with the brand association?56

The strength of brand associations is critical determinants what information will be recalled by consumers and can therefore affect their brand decision.57 To achieve greater awareness, brand recognition and brand recall involve tasks such gaining brand name identity and linking it the product class.58

50 51

Keller (1998), p. 93. Keller (1998), p. 93. 52 Cf. Fayrene and Lee (2011), p.36. 53 Cf. Keller (1998), p.93f. 54 Keller (1998), p. 99. 55 Keller (1998), p.100. 56 Keller (2001), p.12. 57 Keller (1998), p.103. 58 Cf. Aaker (1991), p.72.

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Figure 6: Brand Image Characteristic

59

59

Source: Adapted from: Keller (2001), p.94.

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3 Literature Overview on development of Web 2.0 and Social Media

3.1 Introduction

Development of Web 2.0 technologies has changed word of mouth communication by companies to reach people thought online media such as blog posts, collaborative wikis, social networking, tagging, video post and customer ratings and reviews. Web 2.0 is a term popularized by OReilly Media as the name for a service web development Conference that started in October 2004, after Dale Dougherty mentioned it during a Conference. Dougherty suggested that the Web was in the renaissance, with changing rules and involving business models. Web 2.0 is seen as a second phase of the architecture and application development for the World Wide Web. Web 2.0 applications often use a combination of technologies derived in the late 1990s.60 Web 2.0 is a term that is used to denote several different concepts: Web sites based on a particular set of technologies such as AJAX; Web sites which incorporate a strong social component, involving user profiles, friend links; Web sites which encourage user-generated content in the form of text, video, and photo postings along with comments, tags, and ratings ().61 Web 2.0 is a term that was used to describe a new way in which software developers and end-users started to utilize the World Wide Web as a platform whereby content and applications are no longer created and published by individuals, but instead are continuously modified by all users in a participatory and collaborative fashion.62 Despite frequently usage of the term Web 2.0 there is a huge amount of disagreement about what Web 2.0 exactly means. On the one hand the term is declared as a marketing buzzword and on the other side is accepted as a new conventional wisdom.63 Since 2004, when the term was posted on the Web there had been 135 million64 citations, and by today Google search is returning 183 million web pages.65

60 61

Cf.O'Reilly (2005), p. 1. Cormode et al. (2008), p. 3. 62 Kaplan and Haenlein (2009), p. 61. 63 Cf. O'Reilly (2007), p. 17. 64 Cf. O'Reilly (2007), p. 17. 65 Cf. Web 2.0, (2012), [online].

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Various definitions on Social Media and Web 2.0 clearly confirm that it is impossible to separate these two terms. A formal definition of the Social Media term first requires drawing a line to two related concepts that are frequently named in conjunction with it: Web 2.0 and User Generated Content.66 Zarrella defined Social Media in the context of the pervious media paradigm.67 He explains the difference between traditional media such as television, radio; magazines and newspapers are one-way e.g. static broadcasting technologies and Social Media.68 Furthermore, Safko and Brake are not concentrated on the differences of media forms; they rather put focus on defining Social Media term. Kaplan and Haenlein defined Social Media as a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of user generated content.69

3.2 Development of Web 2.0 and Social Media

In Web 1.0 the content creators were only a few, where the majority of users were simply acting as consumers of the content. Web 2.0 and Social Media is all about giving power to people. Web 2.0 has so called democratic nature. Therefore, any participant can be a content creator in Web 2.0 and various technological aids have been created to maximize the potential for a content creation. Web 2.0 applications are those that make the most of the intrinsic advantages of that platform: delivering software as a continually-updated service that gets better the more people use it, consuming and remixing data from multiple sources, including individual users, while providing their own data and services in a form that allows remixing by others, creating network effects through an "architecture of participation," and going beyond the page metaphor of Web 1.0 to deliver rich user experiences.70

66 67

Cf. Kaplan and Haenlein (2009), p. 60. Zarrella (2010), p. 1. 68 Cf. Zarrella (2010), p. 1ff. 69 Kaplan and Haenlein (2009), p. 60. 70 O'Reilly (2005), p. 2.

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Web 2.0 can also be described as the version of the web that is open to ordinary users and where they can add their content. It refers to the sites and spaces in the Internet where users can put words, pictures, sounds and videos.71 Web 2.0 enables many to many communications, creations of large number of niche groups who can exchange content of any kind and tag, comment, and link to both intragroup and extra-group pages. OReilly discussed the term Web 2.0. He was not keen to give the definition; he offered examples of various Web 2.0 applications. Shift from Web 1.0 to Web 2.0 according to OReilly: Table Development Web 1.0 to Web 2.072

Figure 7: Development - Web 1.0 to Web 2.073

From the technical point of view Web 2.0 can be called revolutionary evolution74 because its based on the aggregation of existing technologies. It changes the way Internet started to be used and the way how human relationships are being developed. The web itself becomes more social.

71 72

Brown (2009), p.1. Cf.O'Reilly (2005), p.1. 73 Source: O'Reilly (2005), p.1. 74 Cf.Barbry (2007), p. 91.

21

Development of Web 2.0 From perspective of Croatian Experts

According to the knowledge and experience of interviewed Croatian experts, in the field of social media, changes that development of Web 2.0 brought, in terms of marketing environment and brand management are visible. All the participants gave similar answers. The development of Web 2.0 has definitely had an impact on marketing environment and brand management. Since the development of Wikipedia and open source everything has changed. Companies had to begin to manage brands systematically over the Internet. Nowadays it is impossible to imagine a company without these possibilities. Those changes encouraged the development of creativity, innovation but also efficiency of campaigns. One of the biggest changes brought by the development of Web 2.0 is that companies besides a mouth have also got ears. Now they have the opportunity to get feedback from consumers. The Internet has become one of the main marketing channels. Every year the budget increases, companies and brand itself invest more and more money for the activities on the Internet. This happens for the reason, social media tool enables more direct communication than any other tool, provides the easiest way to reach customers. Not only has the Internet become one of the main marketing tools, it has dramatically changed marketing environment. Therefore, a lot of companies started to focus on social media which enables friendly, close and direct relationship with their customers. Because of that, customers develop a positive feeling for the brand much easier. Besides that, it enables customers to get much higher amount of information on the product or service they are interested in. Nowadays, all the information is absorbed by online media.

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3.3 Social Media Defined

Social media can be described from two perspectives, the first one is philosophical. It describes the way in which content has become democratized by the Internet and the role people now play. Except from just consuming the information they can create and share the content among each other. The second perspective is practical; it is defined by the categories of software tools that people use to do actions like consuming, conveying, creating and sharing content between each other. These categories are blogs, podcasts, wikis, and social networks.75 If mass media is a monologue to the masses, from one to many, social media is a dialogue, from many to many. Social media supports the human need for social interaction, and the need to share information, knowledge, thoughts and ideas. Some have gone as far as to call it the democratization of knowledge and information. Scott says Social media provides the way people share ideas, content, thoughts, and relationship online. Social media differ from so called mainstream media in that anyone can create, comment on, and add to Social Media content. Social media can take the form of text, audio, video, images and communities.76 Social Media can also be described as a place where consumers communicate with each other across various platforms as diverse as discussion forums, wikis, social networks, and video, photo, news sharing sites.77 These new technologies are giving employees the power over corporate communication and reputation. They make it easier to communicate and build the relationships both between the employee and the company and between each other, in other words the form of organization has changed from top-down approach to the bottom up.78

75 76

Cf. Cook (2008), p.7. Scott (2010), p. 38. 77 Gupita et al. (2010), p. 1. 78 Cf. Cook (2008), p. 14.

23

3.3.1

Attributes of Social Media79

In the following text six valuable attributes of social media are going to be described that make it a powerful tool. Authenticity Social media lets the real voices of real people come through, allowing an intimacy never achieved before in corporate communications. That is the reason why we have never before seen so much unltered, unmassaged, spontaneous information coming directly from the people that run the worlds largest corporations.

Transparency There are two kinds of transparency in corporate social media. The first is traditional financial transparency or the ability for shareholders and regulators to see how well a company is performing financially. The second definition is that through company blogs, communities and other vehicles the rest of a companys inner workings can also be made visible to the public. Immediacy Immediacy is the ability of companies, bloggers, journalists and members of the public to communicate, and to engage in online conversations at unprecedented speed. A blog post can be written, formatted and published in minutes. Twitter updates happen in the blink of an eye. Live video is now within reach of anyone with a handicam, or even a cell phone with a video camera.

Participation Once being the domain of company's authorized communicators, a useful, current definition of corporate communications recognizes that anyone can participate in the conversation, whether on the companys blog, independent forums, personal blogs, Twitter, or any of places online.

79

Cf. Postman (2009), p. 8ff.

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Connectedness Through a multitude of mechanisms for sharing information, social media allows millions of connections to take place, amplifying the impact of company communications. RSS feeds allow information posted in one place to be instantly displayed in thousands of other places. Social bookmarking sites like Digg allow users to easily share stories with others.

Accountability While one of the characteristics of the Internet is supposedly anonymity, and this is true in some cases, people who use social media are more accountable than they might realize. Many companies, and their PRs and marketing agencies, have tried to game the system through unethical practices the practice of falsifying grassroots support for a product, company, service or point of view by having paid company representatives leave anonymous comments. Over and over again, these companies are caught and publicly vilified.

3.3.2

3R of Social Media80

Promotion has always depended on getting customers attention and it always will. The old way was to bombard the customers with messages over and over again. But Web 2.0 customers require a new approach to get their attention. Therefore, the new way can be summarized as the Three Rs. It must be relevant, real and responsive. Relevant Stores on the Web are equally close; therefore the relevance is the factor which enables customers to choose one store over another. If the Web site is the most relevant site for the task at hand, the possibility is higher to get the business. Proximity is being replaced by relevance. Tools like search engines (Google for example) are designed to decide what is relevant for a web shopper. Each searcher is seeking the most relevant search resultsthe Web sites that best match the task being performed at that moment. Relevance is at the top of customers list. Brand loyalty is gradually being replaced by relevance.

80

Cf. Moran (2007), p. 25ff.

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Real Nowadays every company can be held up on the Web and be made accountable. The best example is blog, it's free of charge and anyone can wright it. Companies arent real people are. So the way to be real is to let the people out. Some workers might want to write blogs. Some might just comment on blogs written by others. Others might haunt customer support message boards and explain how your product really works and how to make it work better. Thats what getting real means in marketing today.

Responsive The Internet ends the one-way communication and offline marketing. Online, the message is not just delivered to the customers but the conversation with them starts. If one of the parties is not responsive the conversation ends. Regardless of whether the customer likes or dislikes something of companies practice, the company must react. Especially when customers complain in the public about the product or service, the company has to be prepared and react. Customers who have had a problem and got it resolved are more loyal than those who have been treated flawlessly.

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3.4 The Elements of Social Media

Many researchers discussed how to use social media as a trend indicator and how it is possible to combine the efforts of operations and marketing to manage the behavior of the crowd. Robert Scoble introduced the model of social media called starfish. Starfish is a collection of arms where each of those arms has a specific applicability.81

Figure 8: The Social Media Starfish

82

There are two marketing elements in the starfish concept. The first one is social media which contains a variety of different activities such as photo sharing, blogging etc. The second element describes how effectively the use of social media depends on the selected activities and the mix of social and traditional channels.83

3.4.1

Social Media Engagement

Social media is an extremely eective way of improving customer service but it cannot take place of bad quality of a product or service. Social media oers companies an opportunity to provide more personalized customer service and support. It gives an opportunity to the companies to reach consumers where they spend their time rather than requiring them to visit a separate site every time they need help from a company they do business with. Some companies use social media tool
81 82

Cf. Evans (2012), p. 46. Source: Evans (2012), p. 46. 83 Cf. Evans (2012), p. 46.

27

for one-to-one customer support, technical guidance live, online, with their customers to increase customers engagement.84

Listen

Be patient, polite and open minded Listen, identify issues, adopt pattern language Prepare objectives, identify stakeholders, embrace changes Define goals, limits and policies

Engage and Connect

Get involved, establish interfaces Rely on real faces , contacts and channels Share content, themes and ideas Take responsibility, accept critique and address failures

Network and Implement

Connect and network of individual services and persons Engage with civil society, community and leave footprint Identify and support users, fans etc. Create and hold community meetings

Evolve

Connect, organize, delegate, assign tasks Embrace changes, innovate and evolve Stay engaged, open, creative and be patient Rinse and repeat

Figure 9: LENiE Model

85

LENiE model represents steps which need to be considered when it comes to the usage of social media. When one step is missing engagement is not successful.86 Engagement cycle can be summarized into three easy steps. Cycle can begin when company achieve to attract the potential customer, usually word-of-mouth brings people to the company. This first contact happens usually at companies physical location, website etc. What follows are steps like experience entice and engage. 87

84 85

Cf. Postman (2009), p. 97. Source: adapted from: Speck (2010), p. 48ff. 86 Cf. Speck (2010), p. 480ff. 87 Cf. Goodman (2012), p. 7f.

28

Figure 10: Engagement Cycle

88

To engage people the company needs only a few tools. Firstly, the company needs to have content worth sharing, then the company needs a call to action that directs people, and of course the company needs to deliver mechanisms that push the content to the audience. Its important to make it easy for people to interact with company and companies content and to share information with others. 89 Engagement matters for company because it brings old customers back and enables repeat sales, and with help of social media company begins to be visible and know foe potential or new customers.90

88 89

Source: Goodman (2012), p. 8. Cf. Goodman (2012), p. 49. 90 Cf. Goodman (2012), p. 49.

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3.5 Social Media Tools

Companies can choose among huge variety of well-known and available tools. Below listed and explained are the ones which are used by companies most commonly to promote and increase brand awareness. Both, small and big business are aware of numerous advantages of social media tools usage. Companies use social media for several reasons; to build brand awareness, to network with other businesses, to build relationships with existing and potential customers, to boost sales, to communicate marketing message and promotions, to learn about their customers, to manage their reputation, to see real and human in consumers eyes rather than as an untouchable entity.91 In following subchapters the main types of social media tools are going to be described. From obtained data from interviews it is visible that Croatian companies are keener to use social networks rather than other tools. According to the research and the interviews it is clear that almost all the tools used in western countries are available but not all are used in Croatia. Most commonly used are Facebook, Tweeter, Foursquare, LinkedIn, Google+, Pinterest etc. The most important thing, according to Croatian experts, is the education of people who are responsible for the implementation of social media. They have seen many good and many bad examples of implementation. The main goal is to attract customers, therefore they have to attract customers' attention by giving them enough interesting content to like and comment. Many companies use sweepstakes, discounts etc. just to attract attention. It is very important to get a reaction from customers that is why social media is for. If a company is lucky and able to get strong, positive emotions the ultimate outcome will be very positive.

91

Gunelius (2010), p. 148.

30

Figure 11: Social Media Landscape

92

3.5.1

Blog

Blogs Safko and Brake defined the term blog as a derivate from web log which is simply another word for an online journal.93 Zarella defines blog in a similar manner and defines it as a word-wide-web that contains an online personal journal with reflections, comments, and hyperlinks provided by the writer. Blog provides a variety of social features, including comments, blogrolls, trackbacks, and subscriptions that make it perfect for marketing purpose.94 A blog or initially called web log is a web site that is maintained by an individual with regular entries or posts that include commentary, thoughts, ideas, and may contain photos, graphics, audio or video.95 Blogs are made of posts, display date-stamped entries in

92 93

Source: Saleem (2010), [online]. Cf. Safko (2010), p. 140. 94 Zarella (2010), p. 9 95 Safko (2010), p. 145.

31

reverse chronological order. The quality posts are the main and the most important element of a successful blog.96 Blogs are usually managed by one person (blogger) and they provide the possibility of interaction with others through the addition of comments.97 Mayfield defined the main types of blogs.98 Personal blogs (individuals who keep blog about their life e.g. public diaries) Political blogs (blogs written about politics, aim is to comment on the news, give the analysis of the issues etc.) Business blogs (allow companies to communicate in a less formal style than has been traditional in newsletters) Almost media blogs (allow companies to communicate in a less formal style than has been traditional in newsletters) Mainstream media blogs (nationals newspaper (BBC) have blogs for some of their reporters and editors) Blogs can provide news and content on the specific topic or they can be used as personal journals. Business blogs can be used as internal communication tool between employees or they can be designed for public usage.99 Except for personal usage blog can serve for business purpose. Business blog is a tool with which companies can share knowledge; communicate one with other and with customers. Its low cost, and it enables company to be present on-line without having a web page.

3.5.2

Micro blogs

Zarrella defines micro blogging as a form of blogging where the size of each post is limited. Its is less formal, its easy, it requires less investment of time than blogging. Micro blogging enables customers to send messages, audio, video, and attach files, empowers people to make friends, get directions, give and receive advice, review books,
96 97

Cf. Zarella (2010), p. 13. Cf. Kaplan and Haienlin(2010), p. 63. 98 Cf. Mayfield (2008), p. 17. 99 Cf. Safko (2010), p.145.

32

restaurants, products and services (). Via micro blogs it is easy to create small, intimate communities that are concentrated on specific topics such as politics, technology, medical issues etc.100 The messages are usually shorter than few hundred characters and it enables nearly real time many-to-many communication. The update can be done via the web, via text messages, instant messages or even via e-mail.

Twitter Twitter is the most known high-increasing micro blogging service, which has become more mainstreamed than any other similar social media tool. 101 It has become influential driver of electronic word of mouth. Twitter was created in 2006, and it enables users to post the messages which are not longer than 140 characters.102 Twitter posts are known as tweets. Twitter has reached 500 million user accounts at the beginning of 2012. Tweeter is growing at over 1.123 million accounts per day or in the other words more than 13 new accounts per second.103 Twitter is a powerful tool for connecting like-minded people, developing relationships, getting customer feedback and increasing brand visibility. In the last few years Tweeter has become a major traffic driver back to small business websites. Twitter works especially well with a blog, if you share links to your blog content with your Twitter followers.104 Tweeter can be named as the second (after Facebook) most commonly used tool, which has ca. 20 000 users in Croatia and it is not usable for the mass public. Tweeter is great for a technologically oriented brand and it is easier to find members of IT industry and journalists there. By itself Tweeter is valuable because it enables fast fluctuation of information.

100 101

Cf. Safko (2010), p. 257. Cf. Zarella (2010), p. 31. 102 Cf. Jansen et al. (2009), p. 2172. (u doc. Primjeri na temu) 103 Cf. Bullas (2012), [online]. 104 Cf. McAlear (2009), p. 2.

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3.5.3

Social Networking

People have tended to establish relationships with each other since their existence; social networking is not much more. With the help of social networks people can establish new relationships and group them. The true value of social networks is not just in people but it relies on relationships itself. Social networking is the act of building ones social network.105 Social networking sites are applications that enable users to connect by creating personal information profiles, inviting friends and colleagues to have access to those profiles, and sending e-mails and instant messages between each other.106 Initially social networking sites were created for personal usage.107 Nowadays, social networking sites are a hot topic for companies because of various opportunities for interacting with customers. Opportunities for marketers are in plug-in applications, groups and fan pages.108 More and more companies decided to use social networking as a promotional tool for their brands to build better connections with potential and loyal customers. There are some features which characterize social networks and help to distinguish them from other Web sites.109 Profile page Status updates Network with friends Networks Commenting system Private message possibility

Social media in general increased in popularity among private users and companies. There are sites that focus on private and social actions whose purpose is business.110 Xing and LinkedIn are most popular professional networks. The most popular network used in private purposes is MySpace and Facebook.

105 106

Deans (2009), p. 3. Cf. Kaplan and Haenlein (2010), p. 62. 107 Cf. Lsted (2011), p. 11. 108 Cf. Zarrella (2010), p. 53. 109 Cf. Rigby(2008), p. 60. 110 Cf. Loyd (2009), p. 62.

34

Facebook Facebook was founded in 2004 by Mark Zuckerberg.111 It is one of the fast growing and the most widespread sites on the Internet. Today, Facebook is the dominant social networking site. The service allows members to create a personal profile or business profile and enables them to connect with friends, exchange written messages, connect with a page and become a fan.112 Facebook is available in more than 70 languages. In 2012 Facebook had 845 million active users.113 By the end of 2011 it had 483 million daily active users.114 Facebook can be very beneficial in terms of companies and promotion of their brands. Facebook is increasing because it has many users and it has good engagement tools. The first tool is building a fan page, which can be created by any business. The main advantage of a fan page is that all fans can see all posts in their news feed. it is important to start with optimization of additional content, adding applications, newsletter sing-up pages and events and at the end it is important to promote them to Facebook friends. Business gain additional exposure when someone becomes a fan of the page. Taking advantage of the applications on Facebook can be seen as a second tool. To create extra engagement is not hard because of pre-build tools which enable event promotion, upload or record video etc.115 In Croatia the most popular social network is Facebook, it is the biggest and best exploited social network in Croatia. It has 1.5 million active users and a few thousand Facebook pages. Many companies claim that Facebook changed their way of doing business, they realized how important it is to build up friendship with their customers, and with a Facebook page or application they can build or promote their brand.

111 112

Cf. Carlson (2010), [online]. Cf. Zarrella (2011), p. 67. 113 Cf. Anson (2012), [online]. 114 Cf.Facebook (2012), [online]. 115 Cf. McAlear (2009), p. 2ff.

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LinkedIn LinkedIn is the largest professional social network which was founded in December 2002 by Reid Hoffman and launched in May 2003. By today it has had over 135 million members and it is growing fast, in other words, every second LinkedIn gets two new members.116 LinkedIn connects businesses by industry, function, geography and areas of interest.117 Every professional should have a LinkedIn profile to display credentials. To get real value out of LinkedIn, a company or an needs to setup a LinkedIn Group around his/her business or around a topic his/her customers are interested in. It is even more favorable if participation is not only focused on your own Group, but joins other related Groups too. LinkedIn is a particularly good outpost to monitor those who market to the corporate or enterprise market or who are hiring.118

Google + Google Plus is a social network owned by Google Inc. It was launched on June 2011, and it was integrated into Google Mail on December 2011.119 By now Google Plus has 170 million users.120 It enables users to communicate, collaborate, create and share. Google Plus combines services such as Profiles, Circles, Hangouts and Sparks. People who have an account are able to create a profile with their real name not pseudonyms or nicknames. Profile users can decide whether their profile is visible or searchable. Users can put their contacts under circles and gain more privacy when posting. Circles also allow users to read just information they are interested in. Hangouts are video chats sessions that are initiated by users and can be joined by people in their circle. Users can chat and pull up videos from YouTube which they can view together and comment. Sparks were created to help users to find what they are interested in by providing suggestions and an open search.121 Users can reach Google Plus either on website or mobile device with help of mobile app. Google Plus enables companies to share, promote and measure. It helps to build up better relationships with customers by sharing thoughts, links, photos and promotions. it gives the opportunity to show the customers behind-the-scenes look, and enables to give a face-to116 117

Cf. LinkedIn (2012), [online]. Bothma et al. (2008), p. 187. 118 Cf. McAlear (2009), p. 2. 119 Cf. Andreson and Still (2011), p. 7. 120 Cf. Mashable Social Media (2012), [online]. 121 Cf. Andreson and Still (2011), p. 7ff.

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face feedback with help of video chat. The customer service starts to be much faster and it gives the company a chance to get to know their customers better. If a company wants to send a specific message to specific followers Google circles are the best option.122

Foursquare Foursquare was created by co-founders Dennis Crowley and Naveen Selvadurai, and it was launched in March 2009. By today Foursquare's community has over 20 million people worldwide, with over 2 billion check-ins, and with over millions every day. 123 Foursquare is a location-based social network, it enables users to share and save places they been to. This application can display restaurants, parks, shops, bars etc. according to user preferences. When user check-in at some location one can see what is in his surrounding and which of his friends is nearby. Afterwards user can write reviews and tips for the location and provide new information useful for other foursquare users. 124 Foursquare can be used by any kind of businesses until they have physical location. When brand has physical location company can use foursquare Merchant Platform. It offers a free set of tools to help companies to attract new visitors. When brand holder decides to establish a brand presence on foursquare, they can connect with followers and community on foursquare.125 Social media experts mentioned Foursquare as the third main social network in Croatia. Foursquare is location social network which enables brand holders to provide customers with interesting information on the specific location. Brand holders also give Specials to customers in exchange for their check-in, e.g. customers make free promotion for a brand holder. Experts said that other social networks are just not alive enough in Croatia and the number of users is too small to invest money in them.

122 123

Cf. Google+ (2012), [online]. Cf. Foursquare about (2012), [online]. 124 Cf. Foursquare about (2012), [online]. 125 Cf.Foursquare business (2012), [online].

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3.5.4

Media sharing (Content Communities)

The main objective of content communities is the sharing of media content between users. There are content communities for a wide range of different media types, including text (e.g., BookCrossing), photos (e.g., Flickr), videos (e.g., YouTube), and PowerPoint presentations (e.g., Slideshare) and online pin-board e.g. (Pinterest). From a corporate viewpoint, content communities carry the risk of being used as platforms for the sharing of copyright-protected materials.126

Pinterest Pinterest is a virtual pin-board, which helps to organize things. It is one of the hottest sites on the Web, with traffic growing to 11 million unique visitors in January 2012.127 Pinterest is connecting people all over the world based on their interests and shared content. When an image or link is shared this becomes pin that can be placed on a thematic board, which is usually customized for any topic. Pinterest is good for business which are dealing with visual industry, such as arts, crafts, photography and home decor. And its important to mention that more than 80% of users are female.128

Flickr Flickr is almost the best online photo management and sharing application in the world and it has two main goals. Flickr wants to help people make their photos available to the people who matter to them and they want to enable new ways of organizing photos and video.129 Anyone can share picture publicly or privately. When upload pictures on Flickr, people are contributing to the largest public accessible archive. For companies Flickr is also good, they can share the story of a company not just conduct advertising.130

126 127

Cf. Kaplan and Haenlein (2010), p.62. Cf. Pinterest (2012), [online]. 128 Cf. Pinterest (2012), [online]. 129 Cf. Flikr (2012), [online]. 130 Cf. Zarella (2011), p. 89.

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YouTube YouTube is the most visited video-sharing platform. It was founded in 2005 and it enables users to discover, watch and share videos.131 YouTube has almost the same amount of users like Facebook, 490 million users worldwide and it generates 92 billion page views each month.132 YouTube gives the possibility to set up the channel to display videos that relate to your business, such as product demonstrations, how-to tutorials or website tour videos. People will find the videos by searching on YouTube itself, or by finding video results through search engines. YouTube is owned by Google, Googles search components are working. Statistics goes into the favor of videos, which are one of the most shared forms of content today.133 Every minute, 24 hours of video material is uploaded globally by users. An average user spends 14 minutes on YouTube.134

Slideshare & Scribd Slideshare & Scribd are media-sharing sites that allow users to upload and share PDF reports, PowerPoint presentations, spreadsheets and similar forms.135 For people who are in any kind of business or profession where they generate knowledge pieces in one of the mentioned forms, document-sharing sites are a way to show off expertise.

3.5.5

Others

Podcast The term podcasting derives from two relative terms, iPod and broadcasting. Apple IPod symbolizes portable mp3-player, and the term broadcasting indicates the distribution of audio and video signals to the audience.136 Podcasting allows any person or organization to create a video or audio content in any format they choose and then globally syndicate that content using the power of RSS. RSS changed the way the content is delivered on the Internet and enabled users to decide when
131 132

Cf. YouTube (2012), [online]. Cf.Pring (2012), [online]. 133 Cf. McAlear (2009), p. 2. 134 Cf. Burnett (2012), [online]. 135 Cf. Zarella (2011), p.97. 136 Cf. Hall (2008), p. 45.

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and how they will receive the information they are interested in. Podcasting is much more than just a downloadable audio or video file that is online. RSS is the differentiator, because it not only notifies the subscribers of new information, but also delivers it to them, or offers a direct link.137 Besides audio and video content, podcasts allow to add links, graphics and bookmarks. As a part of social media, podcasting is easy to engage in and is versatile enough to be incorporated into the workings of many different types of organizations for a wide array of purposes. 138 The variety of the content on the Internet is bigger every day and it is impossible to visit all the Web sites you want. RSS allows people to choose the content they are interested in and they want to receive, and be notified when there is something new what is in the sphere of their interest. For companies podcasts are interesting because they enable to address the user multisensorially and interactively. Podcasts are always up-to date and in real time and they can be produced quickly. Podcasts enable companies to record their messages, therefore consumers can either listen or watch it online or simply download it. They are not specific to any industry.139

Wikis Richardson defined wiki as collaborative web space where anyone can edit content that has already been published.140 Or in other words, wiki is collaborative Web sites whose content can be viewed and edited by anyone who has a Web browser and access to the Internet. Wikis concept was established in 1994 by Ward Cunningham, and a year later it was installed on the Internet. The word wiki in Hawaiian has a meaning of fast or quick and it was used to describe a collection of Web pages that can be edited by anyone.141 Wikis were created to help groups collaborate, share and build online content, and are especially useful for distance learners who are separated by time and place.142 Wikis can be used as a source for obtaining information and knowledge, and also as a

137 138

Cangialosi et al. (2008), p. 8. Cangialosi et al. (2008), p.12. 139 Cf. Guffey and Loewy (2008), p.11. 140 Richardson (2006), p. 8. 141 Cf. Safko (2011), p.159. 142 West and West (2009), p. 3.

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method of virtual collaboration.143 Simply wikis can be described as group writing and editing, where all users can edit or comment a document at the same time. Wiki has become valuable, easy to use and free resource tool. In general, wikis give to the user both, author and editor privileges. Wikis are able to incorporate sounds, movies and pictures.144 In other words, these web sites represent social media foundation of user-generated content and the knowledge of the crowd.145 The best example of a wiki is Wikipedia an online editable encyclopedia. Wikis live because of mass contribution, for companies they can bring many benefits such as cheap and fast Intranet and publication of wide spectrum of different documents. They are also used as a cheap and easy project management tool that is accessible by anyone in the organization. With the help of wikis companies can easily manage motes, agendas, calendars, and team related data and plans, also documents among employees and clients are easily shared.146

Consumer Communities In customer communities, customers can exchange information about a service, product and businesses. In these communities people usually share their experience and opinions for a product, artist, car, celebrity etc. These communities are good resources where salespeople can learn about desires of the clients they serve. By being involved in these communities a company can develop knowledge on how to serve clients more effectively. Over 40 million people worldwide participate in such virtual communities. Popular consumer communities are Amazon and eBay.147

Social News and Bookmarking Social news sites are websites that allow user to submit and vote on content from around the Web. Social news sites are considered to be useful for generating the content on the

143 144

Cf. Boulos et al.(2006), p. 41. Cf. EDUCAUSE Learning (2005), p. 1. 145 Cf. Safko (2011), p. 159. 146 Cf.Chatfield (2009), p. 104. 147 Cf. Solomon et al. (2009), p.143.

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web, it helps to isolate the interesting link.148 There focus is on delivering the latest news based on votes. Social bookmarking is a web-based service which enables users to store and share their favorite links. Users store the list of Internet sources that they find interesting and useful on a public website. Social bookmark sites are specified for a specific topic, such as books, videos, shopping etc. Users can tag sources with their own names or by already offered names, thus creating folksonomies.149 Afterwards, someone with a similar interest can view the links by tagging a category, or randomly. Individual bookmarks give the option to design those sites as public or private.150 Social bookmarking is a better way of using the traditional way of bookmarking e.g. saving the URL on your browser. It makes it easier and faster to find a specific page saved a long time ago. Saving a bunch of sites on your browser can make it work slower and it might be confusing and time consuming while finding a specific one. Therefore, users can sing up for free accounts on the website to store data they really need. Those websites enable users to approach their favorites from any computer they want via personalized webpage. The first social bookmarking site was launched in 1996. Since then a plethora of sites which are offering public and private online storage of favorites links have been created.151 Among the variety of available social bookmarking sites offered, Delicious and Digg can be named as the most popular. Small businesses can benefit from social bookmarking. They can increase and generate traffic to their website. Companies can improve page rank and get more visitors and as a result they can increase sells of their product or service.152

Virtual Worlds The rise of the Internet in the sense of mainstream customer medium increased popularity of virtual worlds. Virtual worlds began with simulators which were 3D graphic simulation of

148 149

Zarella (2011), p.103. Folksnomies taxnomies are agreed by scientists or some kind of specialists and folknomies are made from regular people who are usin Web, the typical folknomie is blog. 150 Cf. Bothma et al. (2008), p.186. 151 Cf. Zarella (2011), p. 103. 152 Cf. Davis (2012), p. 75f.

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virtual environment. Virtual Worlds are games in which individuals use avatars as representation of themselves in computer-based space.153 A virtual life-simulation game is Second Life, there people can experience life trough avatars. In 2003 Second Life was launched, it is user-created and socially driven154. One of the extremely popular one was World of Warcraft, but in game-based world the social marketing possibilities are limited.155 Beside the chance to meet people, users could create a social bond, what resulted with high popularity. World of Warcraft has its own established so called ecosystem and is the biggest MMORG (massively multiplayer online role-playing game).156 Although Second Life is a virtual world, there are existing financial transactions like in the real world. Profits or investments can be made in the currency used in the simulation, Linden dollars (L$). There is also the exchange rate between L$ and U.S. $, and they can be turned back into real-world money through Linden Lab and third-party brokers.157 Some companies interact with virtual economies for real economic benefit. Real money commerce in virtual markets has become a huge industry, but it is not fully accepted by gaming industry. Since the real-life is mirrored and companies can use the same tactics and techniques like in the real world, Second Life can be really helpful for companies. Second Life platform can help companies for receiving feedback, gauging customer reaction, testing prototypes. It is also useful for events or meeting places for customers, prospects and employees. A company can also build up a new company in a virtual world, where it can allow users to experience and learn about them.158

Widgets Widget is a self-contained, miniature application that you can pop into one or more Web pages and they are provided by JavaScript. They are stand-alone applications which mean they dont need any additional update or programming because they update themselves.159 Widgets are often on-screen tools such as clocks, tickets for auctions or stocks, daily information and other application which are useful and well perceived in the eyes of users.
153 154

Cf. Tiem et al. (2012), p. 272. Zarrella (2011), p. 175. 155 Cf. Zarrella (2011), p. 171. 156 Cf. Safko (2010), p. 305. 157 Cf. Zarella (2011), p.175. 158 Cf. Safko (2011), p. 307. 159 Cf. MacDonald (2011), p. 463.

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Widgets can help business users to model, administer, manage and monitor business processes and activities. Private users can place companies widget on its own homepage and they will receive companies news and updates. In this way the company can increase brand awareness in the eyes of a customer.160

Mobile Devices Mobile devices can be divided into Personal Digital Assistants (PDAs) and cell phones. PDAs are small computers, sometimes also called pocket computers. They are mainly used to organize books and calendars. Cell phones are usually smaller than PDAs and can be used to make phone calls. GSM or Global System for Mobile Communications is a system used to connect mobile devices and enables service like SMS (Short Message Service) and GPRS (General Radio Packet Service), all over Europe. GPRS allows users to connect to the Internet via their mobile phones. 161 A next generation of mobile device is smartphones (BlackBerry, iPhone, Android). Smartphones allow people to use Social Media software, check e-mails, update their posts whenever they what. Mobile devices are the cheapest, compared to laptops, desktops and broad-band. They are small, easy transportable and any person can afford it. It is not a miracle that on the planet there are three cell phones per person. Mobile devices are the fastest growing segment of technology-driven marketing. It is a piece of technology which allows people to stay in contact with each other, access e-mails, send photos, audio, video, blog, and surf the Web.162 People today are reeling from the benefits of mobile devices through increased productivity. Business people, salespeople and mobile workers are benefiting the most. They dont have to be bound by the desk to get messages in time. They also enable companies employees to provide customers with better customer service. Employees have access to their mail, contacts, corporate data and up-to-date meeting schedules.163 Maps

160 161

Cf. Ahuja and Chandrasekaran (2010), p. 415. Stormer (2005), p. 83. 162 Safko (2011), p. 635. 163 Cf. Unhelkar (2009), p.201.

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Generally, maps are a visual representation of some area. A great development of the Web has affected development of map application by combining communication and graphical information. In the early 2000s interface allowed users to make the request and find their way.164 Google Maps played an important role in changes of the technology, new user-oriented technologies and map mash-ups.165 The development of applications interface programing (API) allowed users to create their own variants of Google Map within their own web page.166 Google Maps and Google Earth allow users things such as pins and place marks, afterwards bringing the additional information like text, video or pictures.167 With the help of the maps some information can be visualized to ease users search. The main aim of using maps is to find relationship or the certain connection between users question and expected answer, therefore maps use GIS.168 Map mash-ups is a popular term, and it refers to a web page or an application that combines data and services from many sources and combines it to a new website. The value of mash up is not in data itself but in user interface for that data. Google Maps allow people to integrate a lot of mash-ups into their website.169 Nowadays, most of the companies own a website. It is essential if company wants to be found by customers. Maps offer customers an easier way to find the location of companies branch offices or headquarters. Besides directions a customer can find other information about the company. Geotagging enables people to tag places or locations they have been to. The users can connect physical location with video, comment or picture. For instance Flickr is the best example of geotagging i.e. location metadata to Flickr images.170

164 165

Cf. Batty et al. (2010), p. 2. Mash up combine data from two or more sources to create a third new service. Combination, visualization and aggregation can be named as main characteristics of mash-ups. 166 Cf. Batty et al. (2010), p. 2f. 167 Cf. Rigby (2008), p. 189ff. 168 GIS system integrates hardware, software, and data for capturing, meauring, analysing and displaying all forms of geographical information. it is used for handling maps. 169 Cf. Van Der Vlist (2007), p. 404. 170 Cf. Flickr (2012), [online].

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3.6

Technologies within Web 2.0

When talking about Web 2.0 and Social Media there are two main technologies mentioned in the literature; RSS and AJAX. In order to understand how the Web works we need to know what the basic thing behind those two technologies is. AJAX and RSS are considered to be two main tools in the development of Web 2.0 applications. HTML (Hypertext Markup Language) and XML (Extensible Markup Language) are the languages to create and format the content on the Web. JavaScript is also scripting language mainly used by client-side Web development.171 As mentioned above, in this section focus is going to be on AJAX and RSS which can create dynamic objects.

AJAX AJAX is a combination of techniques used on Web sites and stands for Asynchronous JavaScript and XML. It is based on techniques of the 1990s that have been joined together.172 AJAX concept is considered to be rich application, it offers much more suitable experience to the users than the standard application does.173 The concept itself separates the user interface from the data which enables a fluid way of exchanging data between a browser and server. It enables to reload just a specific part of the page, without reloading the entire Web page. 174 As a result, Web becomes more responsive, less time consuming and more dynamic. Google Gmail and Google Maps are the best examples of application which is using AJAX techniques. Every time the user saves or sends an e-mail everything is happening behind and user interface remains the same. The same counts for Google Maps, just the selected area on the map is reloading not the entire page.175

171 172

Cf. Deans (2009), p. 6. Cf. Cavaleri (2008), p. 2. 173 Cf. Cavaleri (2008), p. 2. 174 Cf. Deans (2009), p. 6. 175 Cf. Cavaleri (2008), p. 2.

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RSS RSS and Atom are both technologies for subscribing news and other contents from Web pages. ATOM is known as publishing format, but also as more flexible than RSS. Atom is increasingly popular rival to the RSS.176 RSS or Really Simple Syndication is the name of both, the technology and just one of the technology providers. RSS is an XML-based data format for websites; it is used for files exchange that contains publishing information and reviews of the sites contents.177 RSS feature on the Web enables users to sing up and automatically get notified wherever there is an update. Users dont have to go from site to site in order to see what new has been posted, they can find about updates to the content of RSS-enabled websites, blogs or podcasts without actually having to go and visit the site.178 It is a method which enables publishing information in a structured feed format. Firstly, the user has to install a software tool known as aggregator or feed reader. Than the user decides which RSS feeds one wants to receive and subscribe to them. Afterwards, the user will receive information updates.179 RSS readers or aggregators can be desktop-based or web-based. Desktop-based aggregator allows the user to read the content even if he/she is offline. Web-based aggregators allow the user to read the content on the Web whenever he/she wants from whichever computer he wants.180 RSS is included into Internet browsers such as Internet Explorer, Mozilla Firefox and Google Chrome. The most popular aggregators are Google Reader (google.com/reader), Bloglines (bloglines.com), CNN (cnn.com) etc.

176 177

Wusteman (2004), p. 2. Cf. Wusteman (2004), p. 2. 178 Cf. Wusteman (2004), p. 2. 179 Cf. Deans (2009), p. 6., Cf. Wusteman (2004), p. 2. 180 Cf. Thomas (2009), p. 69f.

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4 The Impact of Internet and Social Media on Brands

4.1 Introduction

Management concepts have been changed over the time; they are deeply influenced by the competitive situation and the tools to market.181 With the development of the Internet consumers got the power they didnt have before. Todays marketers must adopt dynamic concepts and forget the static ones in order to create passionate communities and have followers. The brand must rally people not just convince them.182 To achieve more effective and efficient communication marketers have to go on-line, because the customers are there. On-line Publishers Association brought out the information that on-line advertising was estimated at a little less than 6% of global ad spending in 2006, but is expected to jump to 10% to become a $25 billion business by 2009.183 This growth is occurrence of rich media that combine animation, video and sound and beyond that they have interactive features. The Internet provides marketers and customers with opportunities for much greater interaction and individualization. On-line, companies get chance to create and send messages that can engage different segments of customers by reflecting their interests and behavior. The Internet offers the advantage of contextual placement, or sites for ad placement that are related to the marketers offerings. Customers define the rules of engagement, and they define what information they need, what offerings they are interested in and what they are willing to pay.184 The interactive media allows sellers to share and exchange information with their customers but also allows customers to share and exchange information one another as well.185 Customers have open hands and therefore marketers can lose some control over consumers future actions.186 Customer engagement is defined as an intimate long-term relationship with customer.187 The Internet and social media provide opportunity to connect with customers using richer media with grater reach. Advertising Research Foundation defined customer engagement
181 182

Kapferer (2012), p.128. Cf. Kapferer (2012), p.127ff. 183 On-line Publisher's Association (2007) qtd.in: Keller (2009), p.147. 184 Cf. Keller (2009), p.147f. 185 Sashi (2012), p.255. 186 Cf. Keller (2009), p.147f. 187 EIU (2007) qtd.in: Sashi (2012), p.256.

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as turning on a prospect to a brand idea enhanced by the surrounding context.188 In the terms of strategy engagement refers to the creation of experience that allow companies to build deeper, more meaningful and sustainable interactions between the company and its customers or external stakeholders.189 The arrival of the Internet and especially social media gave managers in consumers and business markets worldwide higher potential for grater interactivity and opportunity to serve customers in a better way.190

4.2 Changes in Marketing Rules

4.2.1 The Old Rules of Marketing

Strong brand awareness is caused by successful marketing initiatives, and it leads to higher sales and revenues. Promotion gives the customer information about the product or service to create awareness about the brand. Promotion is defined as marketing function concerned with persuasively communicating to target audience the components of the marketing program in order to facilitate exchange.191 Promotion is one of key elements of the marketing mix.

Kotler and Armstrong claimed that promotional mix consists of a specific blend of advertising, sales promotion, public relationship, personal selling, and direct marketing tools than the company uses to persuasively communicate customer value and build customer relationship.192 Furthermore, promotional mix tools are explained: Advertising can reach massages of geographically dispersed buyers at a low cost per exposure. Personal selling is most effective tool at certain stages of the buying process, particularly in building up buyers preferences, convictions and actions. Sales promotions include a wide assortment of tools coupons, contests, price reduction, premium offers, free goods and others.
188 189

Advertising Research Foundation (2007) qtd.in: Sashi (2012), p.255f. EIU (2007) qtd.in: Sashi (2012), p.256. 190 Cf. Sashi (2012), p.257. 191 Burnett (1993) qtd.in: Chaffey et al. (2006), p.243. 192 Kotler and Armstrong (2008), p.398.

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PR is believable: new stories, features, sponsorships and events seem more real and believable to riders than ads do. Direct marketing is interactive: it allows a dialogue between the communicator and the consumer, and message can be altered depending on the customers response.193

In the traditional communications paradigm, the elements of the promotional mix are coordinated to develop an IMC (Integrated Marketing Communication) strategy, and the content, frequency, timing, and medium of communications are dictated by the organization in collaboration with its paid agents (advertising agencies, marketing research firms, and public relations consultants). The flow of information outside the boundaries of the paradigm has generally been confined to face-to face, word-of-mouth communications among individual consumers, which has had minimal impact on the dynamics of the marketplace due to its limited distribution.194

Figure 12: 1:n Traditional Communication Model

195

Because of the development of the Internet and Web 2.0 Croatian companies couldnt follow or serve the customer and market needs by following traditional rules or by using traditional tools. They were forced to follow the new rules and had to open new division, besides standard marketing and PR division. The new division they had to open was dealing only with social media and social media implementation.

193 194

Kotler and Armstrong (2008), p.398 Mangold and Faulds (2009), p. 359. 195 Source: adaptef from: FitzGerald and Arnott (2000), p.264.

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4.2.2

The New Rules of Marketing

Social media is a hybrid element of the promotion mix because it combines characteristics of traditional IMC tools (companies talking to customers) with a highly magnified form of word-of mouth (customers talking to one another) whereby marketing managers cannot control the content and frequency of such information. Social media is also a hybrid in that it springs from mixed technology and media origins that enable instantaneous, real-time communication, and utilizes multi-media formats (audio and visual presentations) and numerous delivery platforms (Facebook, YouTube, and blogs, to name a few), with global reach capabilities. The emergence of a highly educated, historically affluent, and an increasingly skeptical and demanding consumer population facilitates its acceptance in the marketplace.196

Figure 13: The New Communication Paradigm

197

The Internet has become a mass media vehicle for consumer-sponsored communications. It now represents the number one source of media for consumers at work and the number two source of media at home. The Internet reaches more than 60% of all United States consumers for an average weekly usage rate of more than 100 minutes.198

Consumers are turning away from the traditional sources of advertising: radio, television, magazines, and newspapers. Consumers also consistently demand more

196 197

Mangold and Faulds (2009), p. 359. Source: Mangold and Faulds (2009), p.360. 198 Rashtchy et al. (2007) qtd.in: Mangold and Faulds (2009), p. 360.

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control over their media consumption. They require on-demand and immediate access to information at their own convenience.199

Consumers are turning more frequently to various types of social media to conduct their information searches and to make their purchasing decisions200

Social media is perceived by consumers as a more trustworthy source of information regarding products and services than corporate-sponsored communications transmitted via the traditional elements of the promotion mix.201

Brand is the sum of total customers' experience with the company and its product or service, and company changes customers' lives, whether in a good or bad way. Therefore, Postman claims that customers have always owned the brand. Development of the Internet and social media has changed how companies handle their brands. They have to get ready to let go of the brand. In other words, social media is not about losing or letting go of the brand but simply on deciding how much control company wants to let go and how they can manage companies social media initiatives to achieve business results like improved brand perception and awareness.202 Prior to the web, organizations had only two significant choices to attract attention: Buy expensive advertising or get third party ink from the media. But web has changed the rules. The web is not TV. Organizations that understand the new rules of marketing and PR develop relationship directly with customers like you and me.203

4.2.2.1

Development of Communication Rules

Before the digital revolution, customers awareness could be achieved either through advertising, third party exposure from the media, or direct contact to the consumer. Development of social media has changed the rules, enabling new possibilities to directly communicate with the customers and reach a vast amount of clients at the same time. 204

199 200

Rashtchy et al. (2007) qtd.in: Mangold and Faulds (2009), p. 360. Lempert (2006) qtd.in: Mangold and Faulds (2009), p. 360. 201 Foux (2006) qtd.in: Mangold et al. (2009), p. 360. 202 Cf. Postman (2009), p.8. 203 Scott (2011), p. 5. 204 Cf. Scott (2008), p. 23.

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One-to-One Communication Not so long time ago, companies were putting all the efforts to reach customers into direct marketing while using channels such as e-mail and telephone. Direct marketing is defined as direct communication between buyer and seller where no intermediary media is used. 205 This communication pattern is clearly supporting one-to-one communication, between the brand and the consumer where the consumer was able to give a direct feedback to the brand holder. This form of communication is mainly supported by e-mail system.206

Figure 14:1:1 Communication Model

207

One-to-Many Communication One-to-many communication is based on the traditional communication model, which means that the message goes from a sender to a group of receivers. In this model, communication flows through a medium directly to the consumer but it is one way communication.208 Since the message is sent out to variety of consumers, consumer is not able to reply directly to the message. The aim of this pattern is to reach as many people as possible.209 See (Figure12.Traditional Communication Model) In both cases, the one-to-one communication pattern and the one-to-many communication pattern communication can provide direct communication, when the customer i.e. the receiver of the message contacts directly the brand owner i.e. the sender of the message.

205 206

Cf. Mullin (2002), p. 2. Cf. Reed et al. (1994), p. 90.f. 207 Source: Adapted from:Lee (2009), [online]. 208 Cf. FitzGerald and Arnott (2000), p.264. 209 Cf Schultz et al. (1994), p.6., Scott (2011), p. 23.

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Many-to-Many Communication In many-to-many communication the message or information flows among group of individuals.210 This type of communication means for companies that they have to give a certain level of control. Nowadays, customers are online and they interact whenever and with whom they want. Call centers and customer relations departments tend to look at consumers in a vacuum; they do not consider customers circle of influence.211

Figure 15: n:n Communication Model

212

4.3 Branding in the Digital Age

Today, the Web has become an integral part of brandscape with majority of brands growing online and offline.213 Dayal et al pointed out the important connection between an online customer experience and the brand, it follows: the World Wide Web, the brand is the experience, and the experience is the brand.214 Before, customer would systematically narrow down his brand choices in order to arrive at the final selection and complete his engagement by making a purchase.215 Todays consumer connect with brands in a new way, trough media channels which are beyond

210 211

Cf. Reed et al. (1994), p. 91. Weber (2011), p. 56. 212 Source: Adapted from:Lee (2009), [online]. 213 Cf. Christoulides and de Chernatony (2004), p. 168. 214 Dayal et al. Qtd.in: Christoulides and de Chernatony (2004), p.171. 215 Cf. Haubl et al.(2000), p. 4.

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manufacturers control, traditional marketing strategies has to be redesigned. Customer relies on digital interaction.216 In this new world of e-branding, the Internet has become more than a gimmick or a mere line item on the communications budget. Now it plays more than an important role, its the main tool in enhancing brand relationships and in corporate reputation creation.217 Internet offers a huge advantage over traditional mass media. But in general there is no much difference in building an Internet brand and traditional brand. There are no boundaries and the speed of spreading, sharing and collaborating is incredible. Because of this seed people can move from awareness to action on the Internet. The only difference in brand building is speed, which becomes essential. For marketers to become good in it, it's requires a new way of thinking about how to design Web sites and related marketing communications.218 Customers connect with the brands trough social media channels and evaluate them. After the purchase this consumer may remain engaged, publicly promoting or assailing the product theyve bought, collaborating in the brands development, and challenging and shaping their meaning.219 Edelman made a clear illustrated comparison between consumers decision making than and now.

Figure 16: Then: The Funnel Metaphor

220

216 217

Cf. Edelman (2010), p. 2. Cf. Chiagouris et al. (2000), p. 34. 218 Cf. Chiagouris et al. (2000), p. 34. 219 Edelman (2010), p. 2. 220 Source: Edelman (2010), p. 4.

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The first figure (than) shows marketers assumption on how customers think. Marketers assume that customers are taking large variety of potential brands in consideration, and then they are methodically winnowed choices. Usually the customers buy the product or service after they make final choice. Edelman claims that after purchase, customers relationship with the brand is focused on the use of product or service.

Figure 17: Now: The Consumer Decision Journey

221

The second figure (now) shows that todays consumers have changed compared to few years ago. They rather add and subtract brands from some certain groups under consideration during an extended phase. The difference in the behavior after the purchase is also visible. They enter into an open-ended relationship with the brand, they share their experience online.

4.3.1

Social Media Marketing

Strong marketing presence is beneficial for getting business from customers who are interested in product or service. If company creates brand awareness no matter on customer purchase they will remember on this product or service and seek the brand when they will actually need product or service.222 Social media marketing defers from traditional marketing because it is much cheaper and available to everyone. Traditional marketing tactics are not so effective anymore, because customers have changed, their trust in traditional media has decline. People tend to trust in comments and reviews of peers.223

221 222

Source: Edelman (2010), p. 4. Cf. Weinberg (2009), p. 5. 223 Cf. Weinberg (2009), p. 6.

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Crowd influence becomes one of the main strategies for the success. If company knows how to influence the crowd effectively they can create significant and defensible market position which relies on social acceptance. The most important is to listen to the crowd and learn from it.224

4.3.1.1 Changes in Consumer Decision Making

Consumers are constantly making decision, on the purchase, and use of products or service. The decision making is of a significant importance for both, consumer and marketer. Consumers are often faced with large number of alternatives and therefore they have to make a decision. Due to technological changes and competitive pressure this effect of choosing among huge variety of alternatives is even more exposed.225 As Bettman et al. said: typical consumer choice consists of a set of alternatives. Each of these alternatives is described by several attributes. Some of these alternatives can be known with certainty and others with uncertainty, like reliability or durability of a product or service.226

Figure 18: The Classical Purchase Funnel

227

From traditional media perspective classical purchase funnel has three stages awareness, consideration and purchase, this are the steps company uses to move customers toward the ultimate goal, the sale.

224 225

Cf. Evans (2012), p. 37f. Cf. Bettman (1993), p. 50. 226 Cf. Bettman (1993), p. 51. 227 Source: Evans (2012), p. 40.

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Growth of electronic commerce effected increasing number of consumers who are using interactive media. One of the characteristic of online shopping environments, which can be seen as opportunity, is possibility to create online retail interfaces with interactive features. Interactive features enable customers in their purchase decision to customize electronic shopping environment to their preferences.228 This growth in usage of social media has changed the classical purchase funnel.

Figure 19: The Social Feedback Cycle

229

Social media includes the post purchase user experience and gives it back to the purchase process. The consideration phase in classical cycle was typically avoided by marketers and they were putting a lot of efforts to create awareness. 230 Because of the Internet consumers can get infinitely more information, despite all the advertisement they see or hear, they can verify validity on the Web. User-generated media has a great influence on the decision-making process. Customers who already bought the product or service and had possibility to experience it personally generate information and participate in consumer-to-consumer conversation. This conversation can play an important role in decision-making process of potential customers.

228 229

Cf. Haubl et al. (2000), p. 4. Source: Evans (2012), p. 44. 230 Cf. Evans (2012), p. 44.

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4.3.2

Changes in Customers Behavior and Environment

Before the development of the Internet consumers were left without any other choice, they had to trust what they were being told and that is what had the major effect on the ways brands communicated. Before companies had to decide on the image of the brand and how they wanted consumers to see it. In order to have more influence, the brand holders realized that they had to communicate with their various consumers, so that the brand could be seen as companies wanted to. Due to the development of Web 2.0 consumers have the ability to talk back and to share their views and opinions with other customers.231

Regarding to the development of the Internet customers have become more informed and have become more educated. Customers have become subjects rather than objects. They have also got a higher possibility of choice and they have become more active in creation of a certain image or a specific product or service.

Customers have higher possibilities to learn, hence they have become smarter, wiser and in terms of digital marketing it is much harder to blur there sight. Since it has never been easier to compare the same product, to find where certain products are cheaper and better, companies have to be more careful because they are taking risk of getting public praise or complaints. Customers and companies have become equal. Consumers decide with whom they want to communicate, therefore they ask directly for information they are interested in, they can follow promotion and follow the brand. In this way it is easier for brand holders to create a strong and emotional relationship between a brand and a customer. Brand management has become a much more complex and transparent discipline than it used to be. Even customers have got the identity, they are no longer anonymous. Before it was enough either to have a great product or to have grate marketing, but today both are needed for the success with the emphasis on agile and good customer service and communication.

According to the data collected form the interviews it is clear that the development of the Internet affected the allocation of the budget in Croatia. In the last few years much more
231

Cf. Brown (2009), p. 3f.

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money has been invested in online campaign, which caused reduction of the budget for printed media. Companies invest more and more money into online media and the task for the agencies is to follow the market. Big companies have recognized the Internet as a great marketing tool; mainly because they can follow their customers and according to the direct feedback develop their future strategy. On the other side, the Internet is also helpful for small companies, it enables them to build up their brand and create awareness. Companies and their marketing strategies are much easier to maintain. For brand owners it is important to get every potential buyer because word of mouth on the Internet has reached its full potential. Croatian companies had to adapt for the new platforms, or in another words, they had to recreate content for the Internet users. Brand holders have to change their way of doing business over the time. Tradition marketing channels are not enough anymore. To maximize marketing potential it is necessary to use all the available tools. Companies are looking for new and more creative solutions for the usage of new media. Due to environmental changes Croatian companies had to accept social media as a new tool. With the development of social media brand holders have got a great opportunity of advertising, it is not expensive and they can get direct feedback form customers.

4.3.2.1

Consumer Becomes Prosumer

Alvin Toffler in his book The Third Wave argues that a consumer is phenomena of industrial age.232 Todays consumer action is becoming increasingly recognized as the driving force behind many of the most important online companies. Development of technology enabled customers collaboration such as in wiki and models like open source.233

The consumer changes his role from a passive one and starts to participate actively. An active consumer is involved and active in designing or customizing the end product. Toffler defined prosumers as people who produce some of the goods and services entering their own consumption.234 David and Moy defined prosumer as a professional
232 233

Toffler (1980) qtd.in Kotler (1986), p. 510. Lvy (1997); Benkler (2006); Jenkins (2006) qtd.in: Kozinets et al. (2008), p. 339. 234 Toffler (1986), p. 510.

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consumer.235 The term prosumer is a combination of two words - producer and consumerthat perfectly describes the millions of participants in the Web 2.0 revolution.236

Due to the development of Web and technology the opportunities increased for consumers to communicate and collaborate. There are many platforms which are available for ideas and knowledge sharing. The revolution in consumers online behavior reflects a qualitative shift in consumer creativity that results in what Kozinets et al. call term innovation-oriented online consumer communities.237 In todays dynamic environment, every customers creativity is going back to the business through word-of-mouth marketing.

4.3.2.2 Social Consumer Networks

With the development of Web 2.0 and social media marketers got the power and found the way to tap into these sites as interactive media tools. They allow interaction with customers and relationship building. Those tools have a strong influence on the consumers buying decision. Harridge-March and Quinton said virtual communities and social networks provide the connections to allow consumers to form strong relationships that influence consumer behavior .238

Consumers are now creating they own networks and developing relationships between them. Social consumer communities have special characteristic and they according to Harridge-March and Quinton customers are classified into four different types. Lurkers are present on a service but they dont contribute actively, tourists are contribute to the network just occasionally but do not show a commitment for a network. Minglers are active, they post but without any regularity and devotees are enthusiastic members of a community. 239

Relationship marketing is a term which says that marketers should put efforts on building long term relationships with their customers.240 The development of relationships between consumers within social networks results in social and even emotional bonds being formed. Social bonding can create a sense of loyalty where there may be multiple other sources of

235 236

Cf. David and Moy (2007) qtd.in: Jones et al. (2009), p.928. Cf. Toffler (1986), p. 510. 237 Cf. Kozinets et al. (2008), p. 344. 238 Harridge-March and Quinton (2009), p.172. 239 Harridge-Marchan and Quinton (2009), p. 176ff. 240 Cf. Berry qtd.in: Harridge-March/Quinton (2009), p. 174.

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supply of information i.e. the more you participate, the stronger your social bonds and the less likely you are to look elsewhere.241

Four different types of customers, mentioned before, are of a great importance for brand managers, to identify the right target group of customers and to serve this group with the right advertisement. And word-of-mouth is especially important for marketers in the context of online communities because of the extraordinary popularity, growth, and influence of such communities.242

4.3.3

Electronic Word of Mouth

Traditionally word of mouth (WOM) has been defined as informal communication between private parties concerning evaluations of goods and services or it can be interpreted as face-to-face information exchange.243 Richins et al. defined word of mouth as the process of conveying information from person to person and plays a major role in customer buying decisions.244

WOM is perceived as a powerful marketing medium for companies to influence consumers. The negative aspect of this marketing tool is that it is hard to influence it. WOM contains consumers sharing attitudes, opinions, or reactions about businesses, products, or services with other people. Positive WOM influences the buying decision, since people trust and rely on families, friends, and others in their social network. People appear to trust seemingly disinterested opinions from people outside their immediate social network, such as online reviews.245

This form of word of mouth known as online WOM (OWOM) or electronic WOM (eWOM) appears when people start to trust seemingly disinterested opinions from people outside their immediate social network, such as online reviews.246

OWOM enables customers to influence the brand image and the perception, but once a company starts with eWOM and viral marketing they will lose control because of little or no tools available to manage the content flow.247
241 242

Harridge-March/Quinton( 2009), p. 175. Cf. Brown et al. (2007), p. 3. 243 Cf. Anderson qtd.in: Sweeney at al. (2012),p.237. 244 Cf. Richins et al. qtd.in: Jansen et al. (2009), p. 2169. 245 Duana et al. (2009). qtd.in: Jansen et al. (2009), p. 2169. 246 Cf. Duana et al. (2009). qtd.in: Jansen et al. (2009), p. 2169.

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Microblogging is a new form of communication which allows sharing thoughts and attitudes, and it has a direct impact in the eWOM communication. Microblogs offer immediate sentiment and provide insight in affective reactions towards products at critical junctions of the decision-making and purchasing process. Hennig-Thurau et al. defined eWOM as a statement made by potential, actual, or former customers about a product or company, which is made available to a multitude of people and institutions via the Internet.248 Microblogs allow just short messages, no longer than 140 characters and they are great for the brands, since people can share their thoughts almost anywhere, at any time, and with anyone.249

eWOM communication implies that customers are online and they search for the information on a product or services and share their knowledge and opinion. Such communication can include both positive and negative consumer experiences with a product or company. 250

Microblogging is becoming more and more important because it has a greater influence on eWOM branding efforts. eWOM is an important aspect of consumer expression and it has an impact on the brand's image and awareness.251

The new trend offers new opportunities for brand holders to build a brand relationship with potential customers and increase awareness. With microblogging posts customers can express their feelings, provide feedback, ask questions, and get answers. Microblogging provides a real picture into what customers really feel about the brand and its competitors in real time.252

4.3.4

The Long Tail of Marketing

The Long Tail describes a business model developed by Chris Anderson, the editor of Wired magazine and the author of The Long Tail: Why the Future of Business is Selling

247 248

Cf. Wells et al. (2000), Ennew et al. (2000). qtd.in: Jansen (2009), p. 2169. Hennig-Thurau et al. (2004), p.39 qtd.in: Jansen (2009), p. 2170. 249 Cf. Jansen et al. (2009), p. 2170. 250 Hennig-Thurau et al. (2004), p.42. 251 Cf. Jansen et al. (2009), p.2171. 252 Cf. Jansen et al. (2009), p. 2185f.

63

Less of More which first appeared in Wired in October 2004 and then became a book, published in July 2006.253 The distribution and sales channel of the Internet enables businesses to reach new niche markets by selling a large number of unique items in small quantities. The theory of the Long Tail is that our culture and economy is increasingly shifting away from a focus on a relatively small number of "hits" (mainstream products and markets) at the head of the demand curve and toward a huge number of niches in the tail. As the costs of production and distribution fall, especially online, there is now less need to lump products and consumers into one-size-fits-all containers. In an era without the constraints of physical shelf space and other bottlenecks of distribution, narrowly-targeted goods and services can be as economically attractive as mainstream fare.254

Figure 20: The Long Tail

255

The Long Tail refers specifically to the orange part of the sales chart above, which shows a standard demand curve that could apply to any industry. The vertical axis is sales; the horizontal is products. The red part of the curve are the hits, which have dominated our markets and culture for most of the last century. The orange part is the non-hits, or niches, which is where the new growth is coming from now and in the future.256

253 254

Cf. Anderson (2012), [online]. LongTail (2012), [online]. 255 Suorce: Long Tali (2012), [online]. 256 Cf. LongTail (2012), [online].

64

Some of today's successful Internet businesses leverage the long tail to reach those unserved customers in order to satisfy the demand for certain products found in traditional stores. For example, because of its size a traditional bookstore carries the limits of the inventory of books that can physically be inventoried and sold, which forces the holder of a bookstore to carry a large inventory of the most popular books. On the other hand, there is Amazon, the largest bookseller, where the two-thirds of the books are marked as unpopular. A traditional bookstore cannot afford that, but Amazon can because of the long tail and effective business model where there is no distribution, inventory, real estate and other costs that are burden to traditional retailers.257

For brand managers knowledge of the long tail is important, businesses can be sure to get some market share especially in digital markets. Brand holders who recognized the opportunity they can serve several niches and increase brand awareness Scott says: Marketers must shift their thinking from the short head of mainstream marketing to the masses, to a strategy of targeting vast numbers of underserved audiences via the Web.258

257 258

Cf. Reece (2010), p. 197. Scott (2010), p. 18.

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5 Recommendations

Its important to give a brief insight into Croatian market for further understanding of recommendations. In needed to clarify how ready are Croatian companies for changes and what social media experts point out as the main problem among Croatian companies. The main problem experts see in lack of knowledge among Croatian brand managers. Some companies do not have a lot of knowledge on social media and what the advantages of social media are. This happens when doing business in one company is the same for years, and then it is hard to learn something new and force people to change. If a company wants to be competitive it has to accept changes. This problem can also be described as a fear of unknown; brand holders have not had a direct contact with the new type of marketing and it is understandable that they are scared of customers' reactions. The only solution is to get educated. The experts from agencies try to explain brand holders that people are already on the Internet, and their brand is not.

Croatian experts evaluated the readiness of Croatian Companies for changes and they said that the majority of Croatian companies is becoming aware of changes in the market and they are becoming aware of the power that the Internet and social media bring. Social media can also be called a trend. Croatian experts think that is necessary to educate Croatian public, in order for this kind of communication to become intended for an ultimate number of customers. Croatian experts for social media see the main deficiency in a weak knowledge of brand managers; they are not able to recognize and evaluate good online suggestions, and due to the lack of knowledge they do not know a lot about expenses on the Internet. Another problem experts pointed out, is the capacity of agencies, they are not able to follow the growth of the market. One expert says he sees the problem in undereducated clients. In these situations a company has to adapt and as a result Croatia falls behind on the global stage. He also compared Croatian advertising scene with the one in the USA in 2009/2010. Most familiar with social media in Croatia are the companies that are in foreign ownership. Their whole marketing strategy comes from outside the country, and they have money to invest into education and technology development.

66

Croatian companies are ready to invest more money into social media and they are open towards social media. Those companies who are not willing to accept this situation will have to adapt eventually. Most companies know for Facebook and Tweeter.

After a brief overview of the Croatian market in the following text are given recommendations for companies. First of all, Croatian companies have to realize that time where they were just sending a message, and customers were buying the products, has passed. Consumers are no longer holding bad experience just for themselves like they used to. Every negative customer experience is creating bad publicity for a brand and a brand holder. Companies should recognize these changes as an opportunity in it, not as a threat. Brand holders together with their customers can create a brand that is going to be better and adjusted to customers. Companies should also have in mind that this service is not free of charge. Like in every other business, if a company wants to work on implementation systematically and concretely then they have to pay for the service. Costs can be rather high because this work involves full-time activation of a social media expert who deals with it almost 24/7, since it concerns a highly dynamic medium. The very positive thing in a social medium is that every single activity is measurable and it is easy to see what a good work, according to the results, is. If a company decides to deal with social media without the help of an expert, it is necessary to identify all the social networks where they can maximize their profits. They should develop communication strategy and following steps of the strategy. Communication strategy should be the first step, including the type of communication where key measurement parameters should be defined. Communication strategies differ depending on what the communication goal is and what type of a brand is advertised. Companies in Croatia should definitely implement a social media tool, following examples of some Croatian companies who did so, in the right way, and had the return on the investment even higher than 150%. The best recommendation for a company is to be more original, more creative and more transparent than ever. The majority of social media campaigns are functional only because of their creativity and uniqueness.

67

From the information collected from the interviews, and the fact that Croatia legs behind western countries, the best for companies would be to hire a social media expert e.g. agency for implementation of social media. As mentioned before, in most cases brand managers do not have enough knowledge and companies portfolio could suffer because of wrong decisions taken by those managers.

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6 Conclusion
The purpose of the study is to outline variety of the available social media tools that companies can use in order to create brand awareness and straighten the brands image. Another point of interest was to outline what kind of changes happened due to development of Web 2.0 and how these changes influenced brand management known and used up till that point. For the purpose of the research, theoretical findings and results from the interviews were combined. Upon the results of the theoretical research and information collected from the interviews it became obvious that usage of social media in marketing is no longer an option or debatable, indeed it became critically important to all businesses. It represents a powerful, and additional, channel to first listen to customers, stakeholders, media, bloggers, peers, and other influencers, and in turn building two-way paths of conversation to them. It represents priceless opportunities to build relationships and shape perceptions at every step.259 It was also identified that social media changed and is still changing the communication process, customers are not anonymous anymore and they can provide reviews and comments in real time. The possibilities of social media allow organizations to inform their buyers, interact, participate in conversations, gain credibility, and deliver content directly to their audience. Most people and businesses in Croatia understand that using the Internet and its many applications is the key strategy to strengthen the brand image and raise brand awareness. Croatian social media experts believe that Croatian brand managers lack in knowledge and therefore, Croatian brand holders should invest more money in educating their company leaders.

259

Sheldrake (2008), qtd.in: Brown (2009), p.18.

69

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Internet Index

AMA (2012), Americam Marketing Association, Date assessed: 14.04.2012., URL, http://www.marketingpower.com/Pages/default.aspx Anderson, C. (2012), The Long Tail, Date assessed: 16.07.2012., URL: www.longtail.com/about.html Anson, A. (2012),Social Media Usage Statistics 2012, date assessed: 22.04.2012., URL: http://ansonalex.com/infographics/social-media-usage-statistics-2012-infographic/ Bullas, J. (2012), Tweeter Approaching 500 Milion Users, date assessed: 25.03.2012., URL: http://www.jeffbullas.com/2012/02/13/twitter-approaching-500-million-users/ Burnett, S. (2012), INFOGRAPH: 2012 YouTube Statistics, Date assessed: 23.04.2012., URL: http://www.slideshare.net/sallieburnett/infograph-2012-youtube-statistics Carlson, N. (2012), At Least The Full Story on How Facebook was Founded, date assessed: 23.04.21012. URL: http://www.businessinsider.com/how-facebook-wasfounded-2010-3 Facebook (2012), Key Facts, date assessed: 22.04.2012., URL: http://newsroom.fb.com/content/default.aspx?NewsAreaId=22 Flickr (2012), About Flikr, Date assessed: 11.07.2012.http://www.flickr.com/about/ Flickr (2012), GeoTagging, date assessed: 13.07.2012., URL: http://www.flickr.com/groups/geotagging/ Foursquare (2012),About foursquare, Date assessed: 25.07.2012., URL:https://foursquare.com/about/ 75

Foursquare (2012), Foursquare Brand Platform, Date assessed: 25.07.2012., URL: http://foursquare.com/business/brands Google (2012), Web 2.0. URL: , Date assessed: 14.4. 2012., URL: http://www.google.hr/search?q=web+2.0&ie=utf-8&aq=t&rls=org.mozilla:enGB:official&client=firefox-a Google+ (2012),Date assesse: 13.07.2012., URL:http://www.google.com/+/business/share.html Lee, J. (2009), A Model of Mobile Community: Designing UserInterfaces to Support Group Interaction, Assess date: 22.07.2012., URL: http://www.dubberly.com/articles/amodel-of-mobile- community.html LinkedIn (2012), date assessed:12.05.2012., URL: http://press.linkedin.com/aboutSaleem, H. (2010), 101 Social Media Tools for Social Media Marketing and More, Date assessed: 22.07.2012. URL: http://images.search.conduit.com/ImagePreview/?q=social%20media%20tools&ctid =CT3072253&searchsource=15&SSPV=EB_SSPV&CUI=SB_CUI&start=0&pos=0 Mashable Social Media,(2012), Google+ Rolls Out New Look, Date assessed: 13.07.2012., URL: http://mashable.com/2012/04/11/google-plus-redesign/ Pinterest (2012), What is Pinterest?, Date assessed: 22.04.2012., URL: http://pinterest.com/about/ Pinterest (2012), What is Pinterest?, Date assessed: 11.07.2012., URL: http://pinterest.com/pin/52284045643996210/ Pring, C. (2012), 100 social media statistic for 2012, Date assessed: 11.07.2012., URL: http://thesocialskinny.com/100-social-media-statistics-for-2012/ YouTube (2012), About YouTube, Date assessed: 11.07.2012., URL: http://www.youtube.com/t/about_youtube

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Appendix

Interview 1. o Kako je razvoj Interneta (Web 2.0) utjecao na marketinsko okruzenje i kako je promijenio brend management? Kako se taj efekt odrazio na kompanije te njihove brendove? Definitivno je utjecao. Kompanije su morale zapoeti sustavno upravljati brendovima i putem interneta. Danas je nezamislima kampanja bez ovih mogucnosti. To je znaajno potaknulo kreativnost, inovativnost ali i uinkovitost kampanja. Takoer je pojeftinilo cijeli proces. o Koje je promijene u svijesti potrosaca donio razvoj Interneta?

Potroai su zahvaljujudi ovim tehnikim mogudnostima postali informiraniji i educiraniji. Imaju puno vede mogudnosti izbora ali i aktivnog sudjelovanja u kreiranju imida odreenog proizvoda ili usluge. Potroai su postali subjekti a ne objekti u pravom smislu te rijei.

Koja je razlika u brend managementu danas i prije nekoliko godina, s obzirom na razvoj Interneta?

Razlike su goleme. Interent postaje jedan od vanijih nositelja razvoja brenda i upravljanja njime. Internet je postao naa svakodnevica i ne samo da je postao jedno od najvanijih alata u marketingu, ved je i drastino promijenio marketinko okruenje. Upravo zbog toga, velik broj kompanija se usmjerio na drutvene mree koje im omoguduju ''prijateljski'' odnos sa korisnicima, kupcima njihovih proizvoda. Korisnici se u tom sluaju lake veu za neki bernd, bududi da se on nalazi meu njegovim prijateljima na drutvenim mreama. o Standardni marketinski alati vise ne slijede trendove trzista. Koliko su nositelji brendova (kompanije) svjesne tog efekta? Sto su morale promijeniti? Morali su se maksimalno prilagoditi novim platformama, odnosno kreirati sadraje namijenjene korisnicima interneta. Ti sadraji sada imaju posebne zakonitosti (krade forme, mogudnost povratne informacije, multimedija i sl.).

Kompanije su sve vie svjesnije koliku mod nose internet i drutvene mree. Velik broj komapnija se prilagodio jer nisu mogle ignorirati injenicu da primjerice Facebook ima oko

800 milijuna aktivinih korisnika, od kojih svaka osoba provede dnevno 55min na toj drutvenoj mrei. o Koliko su nositelji brendova na Hrvatskom trzistu upoznati sa brzinom promjene trendova i samim alatima drustvenih medija? Te koliko su spremni na promjene u svrhu jacanja brenda i svijesti potrosaca? Hrvatska iskustva pokazuju da nae kompanije ne zaostaju za zapadnim uzorima i da se velikom brzinom prilagodjavaju i mijenjaju.

Koliko su hrvatske kompanije zapravo upoznate s cijelim pojmom drustvenih medija i kolko su spremne na promjene?

Kompanije u Hrvatskoj su vie-manje otvorene za social media marketing. Naime, prije ili kasnije de se morati prilagoditi tritu te shvatiti kako Facebook danas vie nije obina drutvena mrea, ved on na razliite naine mijenja komunikaciju meu ljudima, ali i odluke koje oni donose. o Koje drustvene mreze su dostupne kompanijama uzevsi u obzir specificnosti ciljanih javnosti brenda kako bi ojacale svijest potrosaca istog brenda? Za koje mreze su kompanije najvise zainteresirane i zasto? Od najaktivnijih drutvenih mrea koje su ujedno i dostupne kompanijama izdvojili bismo Facebook (800 milijuna aktivnih korisnika), YouTube(3 milijarde videa pogleda se svaki dan), Twitter (200 milijuna Tweetova dnevno), LinkedIn( 90% recruitera ga korisit za zapoljavanje). Trenutano kompanije se najvie odluuju za Facebook drutvenu mreu, gdje sa svojim korisnicima osvaruju prijateljski odnos gdje pomodu facbook adsa, facbook stranica ili aplikaciju mogu graditi i promovirati svoj brand. o Za koju mrezu se vasa agencija odlucila?

Prisutni smo na Facebooku zbog popularnosti te mreze. Uz to se oslanjamo na vlastite web stranice na kojima razvijamo posebne vlastite komunikacijske platforme. o o Zasto bas za tu odredjenu aplikaciju/e? Zasto ne za neku/e druge?

iSTUDIO svojim klijentima nudi niz razvojnih i agencijskih usluga za drutvene mree, najvie Facebook. Razvili smo proizvode za profesionalce i medije koji se temelje na drutvenim mreama s ciljem pruanja unikatne vrijednosti na globalnoj razini.

Na koje naciene kompanije koriste te drustvene mreze kako bi privukle potrosace i ojacale brend? Molim vas da opisete. iSTUDIO svojim klijentima nudi niz opcija, naih proizvoda za Fcebook stranice. YouTube tab- nudi direktno povezivanje FB stranice sa YouTube kanalom, videi se sinkroniziraju i prikazuju u stvarnom vremenu, mogudnost dodatnog brandinga Top fan- aplikacija koja prikazuje najaktivnije fanove na stranici i mjeri koliinu interakcije pojedinog fana na stranici (kljune prednosti: potie interakciju, povedava FPI, prua bolju komunikaciju s korisnicima, prati aktivnost fanova..) Crowdsaver- korisnici glasanjem biraju koji proizvod ele na akciju u trgovinama, mogude brendiranje proizvoda) GiveAway- namijenjem estim akcijama nagraivanja korisnika kroz mini nagradne natjeaje, administrator dobiva potpunu listu igraa sa odgovorima, mogudnost brendiranja

Da li su drustvene mreze dovoljno jak komunikacijski kanal za brand management i brand awareness, te ako jesu, zasto?

Smatramo da jesu, Facebook primjerice u Hrvatskoj broji 1, 5 milijuna aktivnih korisnika. Kompanije sa korisnicima imaju bolju komunikaciju, putem razliitih aplikacija i objava potie se dvosmjerna interakcija, mogudnost dodatnog brendiranja...

Interview 2. o Kako je razvoj Interneta (Web 2.0) utjecao na marketinsko okruzenje i kako je promijenio brend management? Kako se taj efekt odrazio na kompanije te njihove brendove? o o Koje je promjene u svijesti potrosaca donio razvoj Interneta? Razvoj interneta omoguio je korisnicima da na brz i jednostavan nain mogu doi do velikog broja kljunih informacija koje su im potrebne u donoenju odluke o samoj kupnji. Danas se sve informacije apsorbiraju putem online medija i zapravo odlazak u trgovinu ini krajnji proces samo gdje osoba kupi i skupi proizvod u samo nekoliko minuta s obzirom na to da se odluka donosila puno prije, na samom interneru. o Koja je razlika u brend managementu danas i prije nekoliko godina, s obzirom na razvoj Interneta? Brand management danas je puno zahtjevnija disciplina, a moglo bi se rei i puno transparentnija. Prije je bilo dovoljno imati dobar proizvod ili dobar marketing ili oboje. Danas je to nuno, sa ogromnim naglaskom i na popratne benefite kao to je brzi i dobar customer service i komunikacija. Danas brand management mora biti originalniji, kretivniji i transpaentniji nego ikad prije. Isto tako mora biti i prilagodlji i puno vie oslukivati same potroae to je konanici, ako se radi na dobroj razini, i dobro za taj brand. o Standardni marketinski alati vise ne slijede trendove trzista. Koliko su nositelji brendova (kompanije) svjesne tog efekta? Sto su morale promijeniti? E ovo ne razumijem. Moe mi malo pojasniti samo? o Koliko su nositelji brendova na Hrvatskom trzistu upoznati sa brzinom promjene trendova i samim alatima drustvenih medija? Te koliko su spremni na promjene u svrhu jacanja brenda i svijesti potrosaca? Kako tko naravno. Veina ih je svjesna da je to novo doba i da moraju biti dio njega i da njihov brand moe i mora komunicirati na taj nain sa potroaima. Naalost, jo nedostaje ipak doza onog pravog dubinskog razumijevanja kako to iskoristiti jo i bolje te kako e se to odraziti na cjelokupni brand ako se radi malo hrabrije. Jer ovo je novi i samim time skliski teren za brand managere. Tu se svaka kriva odluka potencijalno moe pretvoriti u katastrofu (bar smo mi dobili dojam da se tako razmilja) zbog velikog broja ljudi koji su na drutvenim mreama. Meutim, po nama je vie katastrofa ako se ne radi nita jer to znai da si ve u debelom zaostatku sa onima koji neto rade, a pogotovo za onima koji su odluili raditi to na stratekoj razini. Jer takav pristup nije

pristup promocije iste vie, to je pristup koji direktno mijenja filozofiju poslovanja cijele kompanije, uvodi novi business model, a samim time i nosi veliki teret. o Koliko su hrvatske kompanije zapravo upoznate s cijelim pojmom drustvenih medija i kolko su spremne na promjene? Odgoovreno u pitanju prije.

Koje drustvene mreze su dostupne kompanijama uzevsi u obzir specificnosti ciljanih javnosti brenda kako bi ojacale svijest potrosaca istog brenda? Za koje mreze su kompanije najvise zainteresirane i zasto? Realno na netu je dostupno nekoliko tisua drutvenih mrea. Ali u Hrvatskoj se najvie koriste sljedee: Facebook najvea i marketinki najbolje iskoritena drutvena mrea u Hrvatskoj. Trenutno broji 1,5 milijuna aktivnih korisnika i nekoliko tisua slubenih Facebook stranica. Nekima je doslovno promijenila poslovanje. Twitter ima cca 20 000 korisnika i samim time nije jako iskoristiva za neke masovnije potrebe. Ali je izvrsna za tehnoloki orijentirne brandove poto se na twitteru vie kreu pripadnici IT idustrije i novinari. Za medije se pokazao Twitter izvrsnim jer omoguuje brzu fluktuaciju informacija. Foursquare lokacijska drutvena mrea koja omoguuje brandovima da korisnicima daju zanimljive informacije na odreenim lokacijama kao i da im daju posebne ponude (specials) u zamjenu za check-in (prijavu na lokaciju npr. tog restorana) jer na taj nain korisnik radi istome besplantu promociju. Jo se koriste: Pinterest, YouTube, Flickr, LinkedIn, Tumblr, Google+ od drutvenih mrea, ali u manjoj mjeri nego prva tri gore navedena.

Za koju mrezu se vasa agencija odlucila?

Na core business su drutvene mree (i marketing i design i development na njima) od kojih Facebook zauzima cca 90% svega to radimo. On je bio logian odabir jer je stvarno najmoniji drutveni medij te smo i sami iskusili njegovu snagu i na vlastitim projektima. Npr. kada zapoljavamo, promocija ide iskljuivo preko drutvenih mrea i dobijemo ogroman broj jako kvalitetnih prijava. Ali uz Facebook nudimo, a i sami smo prisutni, na svim drugim velikim drutvenim mreama. To je jednostavno filozofija novog marketinga, sa korisnicima morate biti u mogunosti ikomunicirati i dati im se na raspolaganje bilo gdje i bilo kada, i to mora biti to personaliziranije. . Na taj nain mogu se postii najbolji rezultati.

Na koje naciene kompanije koriste te drustvene mreze kako bi privukle potrosace i ojacale brend? Molim vas da opisete.

Kompanije najee nastupaju na njima putem stranica koje se otvaraju dugorono (i na neki nain su kao web stranice) te slue za dvostruku komunikaciju sa korisnicima. Uz to rade se i kampanje putem oglasa na npr. Facebooku i Googleu, kao i aplikacije koje omoguavaju ogroman engagement fanova sa brandom. Znalo se dogaati da je u nekoj aplikaciji naeg klijenta rposjeno vrijeme bilo 1h po korisniku to je ogromna stvar. Zamislite da korisnika sat vremena na TV-u gleda sadraj vezan iskljuivo uz va brand, ili u novinama. Tko bi to mogao platiti? Ovako je to puno jeftinije, a odmah omoguava i puno jau povratnu informaciju. I zato su te drutvene mree toliko mone, jake i zapravo jo uvijek malo podcijenjene u odnosu na njihov pravi potencijal . o Prema vasem iskustvu, koliko su kompanije uspjele povecati svijest o svom brendu nakon implementacije odredjene aplikacije? Odgovoreno pitanje prije. o Da li su drustvene mreze dovoljno jak komunikacijski kanal za brand management i brand awareness, te ako jesu, zasto? Odgovoreno isto u pitanju prije. Brand awareness na cca 1h aktivnog igranja appa je ogromna. o Na koji nacini ili preko kojih medija educirate zaposlenike o novostima i koristenju drustvenih medija? Nai su zaposlenici zapravo svi ljudi koje to openito interesira, a izvor informacija je internet sam koji jje nepresuan. Postoje naravno specijalizirani portali za vijesti iz tog svijeta kao to su: Mashable, Techcrunch, Gizmodo, Social media today, od domaih Netokracija i Zimo. Nae zaposlenike aljemo na konferencije sa tom temamtikom, imamo interne grupe u kojima svatko tko naie na neku bitnu info podijeli sa svima ostalima, puno priamo o tome i tako se isto uimo. A i na samim drutvenim mreama se nalaze zapravo sve potrebne informacije. o Koje su najcesce prepreke u komunikaciji s hrvatskim kompanijama koji zele biti prisutne na novim medijima? Na koji nacin te prepreke rjesvate ako ih ima? Postoji ih nekoliko: 1) strah od nepoznatog poto se brandovi nisu jo susreli direktno sa takvim tipom marketinga, naravno da postoji strah odreeni na to kako e fanovi reagirati, hoe li netko govoriti neto loe i sl. To se uvijek rjeava na nain da pokuamo objaniti kako su ljudi ionako na internetu i priaju o brandu, samo to rade negdje drugdje. Ovako e to napraviti na mjestu gdje imamo priliku odgovoriti, pokazati

drugu stranu prie, ispraviti neto i ponekada pretvoriti razoarane korisnike u brand ambasadore ak. o Koje bi preporuke dali hrvatskim kompanijama kako bi na sto bolji i bezbolniji nacin ojacale svoji bren i svijest kod postojecih i potencijalnih potrosaca. Nako potrebne edukacije i prikupljenih informacija koji bi po vasem misljenju bili najbolji sljedeci potezi nositelja brendova kako bi ojacali svijest potrosaca o brendu? o Hrvatske kompanije definitivno moraju shvatiti kako je vrijeme kada su oni odailjali poruke, a potroai kupovali, prolo. Takoer je prolo vrijeme kada su korisnici svoja loa iskustva drali za sebe i skupinu prijatelja. Sada je svako negativno iskustvo ogroman lo publicitet za brand. Ali to ih ne smije prepasti. Trebaju na to gledati kao na priliku da zajedno sa svojim potroaima grade brand na nain na koji e ga potroai biti jo spremniji kupiti, ali i sa kojim e u konanici biti i zadovoljniji. Druga stvar koju kompanije trebaju shvatiti da to nije besplatno. Kao i u svemu drugome, ako se eli raditi sistematski i konkretno u stratekom i implementacijskom smislu onda kota. I moe kotati poprilino jer podrazumijeva full time aktivaciju osoba koje se time bave gotovo 24/7 te podrazumijeva stalnu potrebu za prilagodbama i uenje poto se radi o izuzetno dinaminom mediju. Ali ono to je dobro za razliku od tradicionalnih medija jest da se i svaka najmanja sitnica moe izmjeriti ime se moe tono pokazati to radi dobar, a to ne tako dobar performans i prilagoavati rad u smjeru boljeg. Svaka uloena kuna moe se izmjeriti i to je ujedno i najbolji dio cijele te prie koja je nekim hrvatskim kompanijama koje su ule u to na pravi nain omoguila povrate na investicije i preko 150%.

Interview 3 o Kako je razvoj Interneta (Web 2.0) utjecao na marketinsko okruzenje i kako je promijenio brend management? Kako se taj efekt odrazio na kompanije te njihove brendove? Internet svojim razvojem postaje dominantan marketinki kanal. Svake godine raste udio budeta koji marketinke agencije i sami brandovi odvajaju za svoje aktivnosti na internetu. U njemu su dobili kanal kojim direktnije nego ikad mogu doi do potroaa, zbog ega su morali prilagoditi i svoje marketinke aktivnosti i strategije. Razvoj web 2.0. je promijenio sliku interneta, tj. Od wikipedije, vise nista nije isto. Bilo je samo pitanje vremena kada ce ljudi poceti uredjivati sami sadrzaj na internetu i zapoceti interakciju. Najvecu prednost koju je donio web 2.0 je ta da su kompanije dobile internet usi, tj pored usta, koje su dobili s web 1.0, u biti sto je jos i vaznije jer su dobili feedback, neki su se brzo prilagodili pa su to iskoristili da poboljsaju svoju ponudu/ proizvode i slicno. Neki to nazalost jos nevide kao slusni aparat, bar u hrvatskoj... o Koje je promijene u svijesti potrosaca donio razvoj Interneta?

Smatram da je potrosac postao pametniji, mudriji, i sve je teze zamaglit mu oci, naravno govorimo o digitalnom marketingu. Nikad nije bilo lakse usporediti isti proizvod, pronaci gdje je najpovoljniji i slicno. Etrgovine vec uzimaju maha, i to vi se vec moglo reci da je web 3.0 u neku ruku. Zahvaljujui internetu potroai mogu direktno komunicirati s brendovima te ih javno kuditi i hvaliti. Oni izlaze iz anonimnosti koju prua masovno potroako drutvo i inzistiraju na puno veem angamanu brenda da ga se osvoji i zadovolji. o Koja je razlika u brend managementu danas i prije nekoliko godina, s obzirom na razvoj Interneta?

Velike kompanije su odavno prepoznale internet kao odlican alat za marketing, ponajvise sto se sve moze pratiti, i tocno dobiti feedback svih strategija i kampanja koje se odvijaju. S druge strane malim tvrtkama je omoguceno da izgrade svoj brend na relativno jeftin nacin ili da ga jos vise ojacaju. Penetracijom interneta brendovi moraju prilagoavati svoje marketinke strategije na nain da odravaju odnose s potroaima umjesto da im samo "prodaju priu". Nalaze se u poziciji da se bore za svakog potencijalnog kupca jer su svjesni da je word of mouth na internetu dosegao svoj puni potencijal te moraju posebno paziti na svaku svoju aktivnost. o Standardni marketinski alati vise ne slijede trendove trzista. Koliko su nositelji brendova (kompanije) svjesne tog efekta? Sto su morale promijeniti? Na svjetskoj sceni, tvrtke razmisljaju drugacije, puno vise se takmice i jasno da se stalno prilagodjavaju, medjutim u hrvatskoj taj efekt jos nije stigao, prvenstveno iz razloga sto tvtke nemaju preveliku konkurenciju (bar u internet marketingu), tako da nema toliko takmicarskog duha, relativno rade na tome jako ulaganim tempom, druga stvar je sto nemamo konkretne strucnjake za online marketing (pisanje komentara na fejsu NIJE online marketing). Na prste mozemo nabrojati kompanije u hrvatskoj koje prvenstveno se oglasavanju na internetu, a to su u vecini stranice za kolektivnu kupovinu, te telekomunikacijske kompanije i slicnje njima koje se ponajvise sluze screen oglasavanjem, tj u vecini nekim informativnim karakterom. Svi brendovi kad - tad moraju uhvatiti korak s vremenom ele li opstati. Moe se rei da su oni koji do danas nisu doveli internet u fokus ugrozili svoje pozicije na tritu. Standardni kanali jednostavno vie nisu dovoljni, kako bi se maksimalizirao marketinki potencijal potrebno je iskoristiti sve raspoloive alate. o Koliko su nositelji brendova na Hrvatskom trzistu upoznati sa brzinom promjene trendova i samim alatima drustvenih medija? Te koliko su spremni na promjene u svrhu jacanja brenda i svijesti potrosaca?

Mislim da je vecina upoznata s facebookom i twiterom i sl. Ali da ga svi koriste na pravi nacin, o tome bih se dalo raspravljati. Jos prosle godine masa istih je imala profil umjesto page, sto dovoljno govori o znanju i samom pristupu socijalnim mrezama. Ponavljam, soc mreze su odlican slusni aparat i alat za interakciju s klijentima. Mislim da u hrvatskoj imamo problem da su klijenti cesto neuki, te da se firme cesto prilagodjavaju klijentima jer nemaju drugog izbora, a onda s druge strane samim time zaostajemo na svjetskoj sceni. Hrvatsku oglasavacku i socijalno oglasavacku scenu bih usporedio s americkom 20092010. Tvrtke su svjesne promjena, pitanje je samo koliku im vanost daju. Drutvene mree najbolji su primjer: neke su ih odmah prihvatile prepoznavi njihov potencijal i vanost u direktnoj komunikaciji s potroaima, dok ih druge smatraju tek pukom zabavom. Ve sad se moe rei da su ovi drugi propustili jednu veliku priliku koje im drutvene mree pruaju u ostvarivanju marketinkih aktivnosti. to se samih alata tie, svijest o njima je dosta ograniena, s njima su u puno veoj mjeri upoznati strunjaci za drutvene mree, odnosno community manageri. o Koliko su hrvatske kompanije zapravo upoznate s cijelim pojmom drustvenih medija i kolko su spremne na promjene? Najvise su upoznate kompanije koje su u stranom vlasnistvu i oni donose novitete na scenu, zato sto im cijela marketinska strategija dolazi iz vana i oni su ti koji imaju novce da ulazu u edukaciju koristenja novih tehnologija i sam nacin oglasavanja na istim. Npr sluzba za korisnike bonbona odvija se iskljucivo preko soc mreza...sto smanjuje troskove itd. o Koje drustvene mreze su dostupne kompanijama uzevsi u obzir specificnosti ciljanih javnosti brenda kako bi ojacale svijest potrosaca istog brenda? Za koje mreze su kompanije najvise zainteresirane i zasto?

Mislim da su najvise zastupljeni facebook i twitter, youtube kanal, tu i tamo linkedin, medjutim mnoge druge poput asmallworlda ili internationsa...tek trebaju otkriti. Fb, tw, li, su najcesce koristene iz razloga sto su najpoznatije u hrvatskoj te na tim mjestima mogu pronaci najvise svoje publike. Nisu za sve kompanije idealne socijalne mreze, za jedan siemens ili za firmu koja se bavi nekretninama to svakako nije toliko zanimljivo, dok za one koje nude nove proizvode siroj masi, informiraju ih o njima i slicu, zasigurno bolje prolaze. Apsolutni primat dri Facebook. Razlog tome je vrlo jasan: u Hrvatskoj je gotovo milijun i pol ljudi na toj drutvenoj mrei, to je s obzirom na penetraciju interneta u naoj zemlji dosta visoka brojka. Brendovi su shvatili da putem njega mogu direktno doi do potroaa te su shodno tome prilagodili svoje marketinke strategije. Osim toga, Faecbook prua mogunost dosta preciznog prikupljanja fanova, pa brendovi mogu lako doi do svoje ciljane publike. Uz Facebook, raste i upotreba Twittera, no zbog male zajednice jo uvijek mu u veoj mjeri ne pridaju vanost. Za koju mrezu se vasa agencija odlucila? Facebook, Twitter i Google+. o Zasto bas za tu odredjenu aplikaciju/e?

Na Facebooku je 24sata prisutan oko etiri godine, tako da postoji neki kontinuitet aktivnosti. Ovu mreu odmah smo prepoznali kao idealnu za nae marketinke aktivnosti, ali i za pomo u kreiranju novinarskog sadraja. Koristimo Twitter zbog njegove brzine i direktne komunikacije s itateljima, dok Google+ profil odravamo zbog potencijala koji, ipak, tek treba pokazati. o o Zasto ne za neku/e druge?

Na koje naciene kompanije koriste te drustvene mreze kako bi privukle potrosace i ojacale brend? Molim vas da opisete.

Neke to rade na dobar neki na vrlo los nacin, stvar je privuci paznju, pokrenuti raspravu, natjerati ljude da lajkaju, komentiraju, sharaju i slicno (ne da su tome prisiljeni), vec da to prave jer zele podijeliti informacije koje tvtka nudi s svojim prijateljima. Mnoge koriste nagradne igre, popuste, kreiraju aplikacije i slicno... o Prema vasem iskustvu, koliko su kompanije uspjele povecati svijest o svom brendu nakon implementacije odredjene aplikacije? Da li su drustvene mreze dovoljno jak komunikacijski kanal za brand management i brand awareness, te ako jesu, zasto? Jesu, no ne smatram da trebaju biti iskljuivo sredstvo za postizanje tih ciljeva. Upravo zbog ranije spomenute direktne komunikacije koju omoguuju te naina na koji pojaavaju word of mouth smatram da bi svaka marketinka agencija ili odjel trebala imati aktivnosti na drutvenim mreama u svom fokusu. o Koje bi preporuke dali hrvatskim kompanijama kako bi na sto bolji i bezbolniji nacin ojacale svoji bren i svijest kod postojecih i potencijalnih potrosaca. Nako potrebne edukacije i prikupljenih informacija koji bi po vasem misljenju bili najbolji sljedeci potezi nositelja brendova kako bi ojacali svijest potrosaca o brendu? Mislim da je se najbolje prepustiti agenciji koja iskljucivo radi oglasavanje na soc mrezama, iz razloga sto firme cesto zaposljavaju osobe koje nisu adekvatne za taj posao, te donesu vise stete nego koristi. A uz to ih koriste da budu multipraktik u firmi, pa im pisanje statusa i objavljivanje clanaka bude tek usputni posao koji rade. Mislim da je uvijek dobro pratiti neke svjetske kompanije, gledati sta oni rade, na koji nacin, te slicne strategije, naravno prilagodjene primjeniti na nase trziste. Brendovi moraju shvatiti da je komunikacija putem interneta, a posebno kroz drutvene mree, unijela velike promjene u marketingu. Brendovi trebaju identificirati drutvene mree na kojima mogu ostvariti maksimalan efekt, napraviti strategiju nastupa i brinuti o njezinoj provedbi. U svakoj tvrtki, bila ona velika ili mala, treba postojati osoba koja e se brinuti o imidu na nain da oslukuje to

ljudi priaju o njoj. Naravno, nije dovoljno samo oslukivati, valja i propisno reagirati: ulaziti u komunikaciju sa svakim pojedinim potroaem koji za to pokae interes i pobrinuti se da bude zadovoljan. Uz malo truda, dobit e ambasadora brenda iji e glas biti itekako vaan kod buduih marketinkih aktivnosti.

Interview 4 o Kako je razvoj Interneta (Web 2.0) utjecao na marketinsko okruzenje i kako je promijenio brend management? Kako se taj efekt odrazio na kompanije te njihove brendove? o Koje je promijene u svijesti potrosaca donio razvoj Interneta? U prvom redu potroai su postali svjesni svoje moi na drutvenim mreama njihovo dobro, a pogotovo loe miljenje o proizvodia i uslugama vide ostali korisnici i zbog toga se osjeaju ravnopravnima u komunikaciji s kompanijama. o Koja je razlika u brend managementu danas i prije nekoliko godina, s obzirom na razvoj Interneta? Puno vei dio budeta se ulae u online kampanje, uglavnom na raun smanjenja budeta za tiskane medije. Kompanije sve vie trae inovativnost u koritenju medija, a ne samo kreativna rjeenja u sklopu strogo definiranih briefova. Samim tim, kompanije su otvorenije za proaktivne projekte i kampanje budui da one najee ukljuuju kreativne upotrebe prvenstveno drutvenih medija. o Standardni marketinski alati vise ne slijede trendove trzista. Koliko su nositelji brendova (kompanije) svjesne tog efekta? Sto su morale promijeniti? Kompanije ulau sve vie novaca u online medije, a na agencijama je zadatak da slijede trine trendove. Velike agencije su esto pretrome u tome i to je otvorili prostor za male specijaliziranje digitalne agencije koje esto dobivaju poslove na natjeajima (pitchevima) protiv velikih agencija iskljuivo na raun kreativnosti i praenju trendova.

Koliko su nositelji brendova na Hrvatskom trzistu upoznati sa brzinom promjene trendova i samim alatima drustvenih medija? Te koliko su spremni na promjene u svrhu jacanja brenda i svijesti potrosaca? Kompanije su spremne uloiti vie u online, a pogotovo u drutvene medije. Najvei problem je educiranost brand managera koji ne znaju propoznati i evaluirati dobre online prijedloge, a problem je i kapacitet agencija koje nisu u stanju pratiti znaajni rast trita. Takoer je problem i pogrena pretpostavka needuciranih brand manadera koji smatraju da je sve na internetu besplatno, a onda se iznenade kad shvate da kvalitetna produkcija i kvalitetna kreativa ipak ima cijenu.

Koliko su hrvatske kompanije zapravo upoznate s cijelim pojmom drustvenih medija i kolko su spremne na promjene? Hrvatske kompanije su otvorene prema drustvenim medijima od samog poetka njihove popularnosti u zemlji. Jo uvijek najuspjenija kampanja na drutvenim medijima u regiji je ivotinjsko carstvo na Facebooku koje je lansirano 2008. Godine, a danas je teko pronai tvrtku koja nije imala neke aktivnosti na drutvenim medijima.

Koje drustvene mreze su dostupne kompanijama uzevsi u obzir specificnosti ciljanih javnosti brenda kako bi ojacale svijest potrosaca istog brenda? Za koje mreze su kompanije najvise zainteresirane i zasto? Najpopularnija mrea je Facebook s 1.400.000 aktivnih korisnika u Hrvatskoj i velika veina aktivnosti se odvija na njoj. Druga najpopularnija je LinkedIn s gotovo 300.000 aktivnih korisnika, ali do sada nije znaajnije upotrebljena za marketinke svrhe. Trea najpopularnija je Twitter s 10.000 aktivnih rauna (korisnika i brendova) i na njoj ima veliki broj marketinkih aktivnosti. Twitter moda nema veliki broj korisnika, ali na njemu se nalazi veliki broj novinara i PR-ovaca i vijesti s Twittera esto zavre u masovnim medijima i na taj nain do velikog broja korisnika. Foursquare koristi manje od 10.000 korisnika, a za Pinterest nemamo podatke ali sumnjamo da se radi o jo manjem broju.

Za koju mrezu se vasa agencija odlucila? DRAP najee preporuuje Facebook svojim klijentima, ali imali smo kampanje i na Twitteru i Foursquare. Za masovne bradnove gdje je doseg medija bitan, Facebook nema ozbiljne konkurencije. Jedina iznimka su PR kampanje kojima je cilj doi do masovnih medija koristei Twitter. Najbolji primjer za to je YouTube video o drutvenim mreama (http://youtu.be/tdmBgOHRln0) koji je preko objave na Twitteru zavrio na dnevnim vijestima RTL a ina taj nain ostvario svoj cilj. o Zasto bas za tu odredjenu aplikaciju/e? DO sada smo imali vie od 100 aplikacija na drutvenim mreama, preteito na Facebooku. Najuspjenije su ivotinjsko carstvo na Facebooku koja je osvojila zlato kao najbolja niskobudetna kampanja na EFFIE Croatia 2010., te Euromania 2012 koja je osvojila Best in show kao najbolja online kampanja na MIXX 2012. o Zasto ne za neku/e druge? Koristili smo i druge drutvene medije, ali najbolji rezultati su do sada bili postizani na Facebooku.

Na koje naciene kompanije koriste te drustvene mreze kako bi privukle potrosace i ojacale brend? Molim vas da opisete. Najee se radi o otvaranju slubenog profila i kombinaciji oglaavanja (SocialAds) i community managementa. U boljim sluajevima, radi se o kreativnim kampanjama koje ukljuuju i aplikacije, drutvene igre i sl.

Prema vasem iskustvu, koliko su kompanije uspjele povecati svijest o svom brendu nakon implementacije odredjene aplikacije? Najbolji primjer je ivotinjsko carstvo koje je uspjelo podii prodaju za 32% i 39% u 2008. I 2009. Kao rezultat kampanje na drutvenim medijima.

Da li su drustvene mreze dovoljno jak komunikacijski kanal za brand management i brand awareness, te ako jesu, zasto?

Drutveni mediji pojaavaju jake reakcije potroaa na kampanje. Ukoliko uspijete izazvati snane, pozitivne emocije kao rezultat vaih aktivnosti na drutvenim medijima, rezultat e biti jako pozitivan. Ovo nije jako i vrlo esto brandovi ne uspiju postii takav efekt i u tim sluajevima drutveni mediji nemaju znaajnu prednost u odnosu na primjerice online display oglaavanje bannerima. o Na koji nacini ili preko kojih medija educirate zaposlenike o novostima i koristenju drustvenih medija? Nai djelatnici su strunjaci za drutvene medije koji svakodnevno prate sve relevantne strane i domae portale i blogove o drutvenim medijima. o Koje su najcesce prepreke u komunikaciji s hrvatskim kompanijama koji zele biti prisutne na novim medijima? Na koji nacin te prepreke rjesvate ako ih ima? Najvei problem je edukacija i nerazumijevanje medija. Postoji velika razlika izmeu konzumacije i kreiranja sadraja i potrebno je neko vrijeme da bi klijentima objasnili koje stvari stvarno funkcioniraju u praksi, a koje samo zvue dobro kad ih se proita na nekom od brojnim Social media blogova. o Koje bi preporuke dali hrvatskim kompanijama kako bi na sto bolji i bezbolniji nacin ojacale svoji bren i svijest kod postojecih i potencijalnih potrosaca. Nako potrebne edukacije i prikupljenih informacija koji bi po vasem misljenju bili najbolji sljedeci potezi nositelja brendova kako bi ojacali svijest potrosaca o brendu? Najbolja preporuka je da budu kreativni i inovativni i da ne pokuavaju kopirati uspjehe drugih. Na drutvenim medijima veina kampanja funkcionira samo jednom zbog svoje kreativnosti, ali kopiranjem te kreativnosti ete samo dobiti kopiju koju krajnji korisnici kao takvu prepoznaju i

Interview 5 o Kako je razvoj Interneta (Web 2.0) utjecao na marketinsko okruzenje i kako je promijenio brend management? Kako se taj efekt odrazio na kompanije te njihove brendove? Utjecaj je izuzetan. Pogledajte brend menadment otprije nekoliko godina, a pogledajte ga sada svi vei, pa i manji, brendovi su na drutvenim mreama. Web stranice postoje ve due vrijeme, ali u sklopu njih su sada i korporativni blogovi, integrirane su i drutvene mree. Brendovi nisu vie zatvoreni i nedodirljivi, putem drutvenih mrea postali su nai prijatelji s kojima svakodnevno komuniciramo. o Koje je promijene u svijesti potrosaca donio razvoj Interneta? Potroai odluuju direktno komunicirati s brendom, stoga putem drutvenih mrea pitaju ono to ih zanima, prate promocije, drue se s brendom. Brend je na taj nain postao blii, a i lake je stvoriti emocionalnu vezu izmeu brenda i korisnika. o Koja je razlika u brend managementu danas i prije nekoliko godina, s obzirom na razvoj Interneta? Osim naina koji su bili uobiajeni (reklamiranje putem tradicionalnih medija itd.) brendovi su morali prihvatiti drutvene mree. Njihova je mo neupitna, a na brendovima je da odaberu hoe li uzeti svoj dio kolaa ili ne. Ovim su brendovi dobili puno povoljni nain promocije, a ujedno i uju iz prve ruke to korisnici misle o njima. o Standardni marketinski alati vise ne slijede trendove trzista. Koliko su nositelji brendova (kompanije) svjesne tog efekta? Sto su morale promijeniti? Veina kompanija i brendova su svjesni promjena, stoga su prisutni na drutvenim mreama. Oni koji jo to nisu uinili, vjerojatno e u kratkom roku, jer je sve jasnije da je reenica vai potroai su ve tamo i razgovaraju o vama, a na vama je hoete li se pridruiti ili ne itekako istinita.

Koliko su nositelji brendova na Hrvatskom trzistu upoznati sa brzinom promjene trendova i samim alatima drustvenih medija? Te koliko su spremni na promjene u svrhu jacanja brenda i svijesti potrosaca? Drutvene su mree dole neto kasnije u Hrvatsku nego u zapadnije zemlje, ali trend je prihvaen. Veina tvrtki i brendova svjesna je utjecaja koji drutvene mree imaju, stoga prihvaaju i promjene neki bre, a neki sporije. Oni kojima je teko pratiti promjene taj zadatak predaju agencijama specijaliziranim za drutvene mree.

Koliko su hrvatske kompanije zapravo upoznate s cijelim pojmom drustvenih medija i kolko su spremne na promjene? Veina tvrtki je upoznata s pojmom drutvenih medija i veina ih je spremna za promjene neki ih lake prihvaaju, neki neto tee. No, svi su svjesni da je utjecaj drutvenih mrea prejak da bi ih se ignoriralo.

Koje drustvene mreze su dostupne kompanijama uzevsi u obzir specificnosti ciljanih javnosti brenda kako bi ojacale svijest potrosaca istog brenda? Za koje mreze su kompanije najvise zainteresirane i zasto? Na prvom je mjestu uglavnom Facebook zbog svoje rairenosti i injenice da najvei broj korisnika koristi upravo tu drutvenu mreu. Facebook je prilagoen brend menadmentu, stoga se profili brendova i kompanija razlikuju od privatnih profila, a brendovi imaju kompletan set alata koji im olakava upravljanje ovom drutvenom mreom (oglasi, sponzrirane prie, statistike itd.). Na drugome je mjestu Twitter, a slijede LinkedIn, Google Plus, Pinterest itd. Svakoga se dana pojavljuju nove drutvene mree koje valja imati na oku, ali treba imati na umu da nije svaka drutvena mrea za svakoga, stoga treba pronai odgovarajui kanal za komuniciranje poruka brenda.

Za koju mrezu se vasa agencija odlucila? Facebook, Twitter, Google Plus, LinkedIn, Pinterest, Instagram o Zasto bas za tu odredjenu aplikaciju/e?

Kao agencija koja se bavi drutvenim mreama moramo pratiti trendove i usvajati nove drutvene mree bre od drugih kako bismo ih mogli preporuiti naim klijentima.

o o

Zasto ne za neku/e druge? Ovo su trenutno najposjeeniji kanali drutvenih mrea. Istraujemo i sve nove koji se pojave.

Na koje nacine kompanije koriste te drustvene mreze kako bi privukle potrosace i ojacale brend? Molim vas da opisete. Drutvene mree trae veliku razinu interaktivnosti s korisnicima. Ovisno o vrsti drutvene mree nudi se zanimljiv, edukativan, informativan i zabavan sadraj kojim se privlai korisnika na interakciju. Bitno je sluati korisnike i pokuati rijeiti njihove probleme. Brend/tvrtka na drutvenim mreama mora pokazati osobnost kako bi korisnici imali osjeaj da priaju s osobom, a ne sa primjerice sokom, mlijekom ili pelenama. Tako se razvija uzajamno potovanje i povjerenje.

Prema vasem iskustvu, koliko su kompanije uspjele povecati svijest o svom brendu nakon implementacije odredjene aplikacije? Ukoliko se drutvene mree ispravno koriste, odjek moe biti velik. Treba imati na umu da nije dovoljno samo kreirati profil i iskljuivo komunicirati samo o brendu, i to jednostrano, bez interakcije s korisnicima. Takva komunikacija nije dovoljna, potrebno je imati jasnu strategiju i ciljeve te metode kako te ciljeve postii.

Da li su drustvene mreze dovoljno jak komunikacijski kanal za brand management i brand awareness, te ako jesu, zasto? Drutvene su mree itekako jak komunikacijski kanal za irenje svjesti o brendu jer je lako doi do ciljane skupine (primjerice, Facebook oglasi mogu se usmjeriti prema ciljanoj skupini s obzirom na njihovu dob, interese, lokaciju, spol itd.), a i zbog injenice da se sve radi u stvarnome vremenu. Dobra promocija moe se lako proiriti putem drutvenih mrea, ali to moe biti i dvosjekli ma lako se proiri i

negativna vijest, stoga na to treba biti spreman i imati jasan plan za kriznu komunikaciju. o Na koji nacini ili preko kojih medija educirate zaposlenike o novostima i koristenju drustvenih medija? Putem konferencija, e-knjiga, webinara, portala, a i sami se meusobno educiraju. o Koje su najcesce prepreke u komunikaciji s hrvatskim kompanijama koji zele biti prisutne na novim medijima? Na koji nacin te prepreke rjesvate ako ih ima? Neke kompanije nisu sigurne to su to drutvene mree i koje koristi one mogu imati od njih. Kad se poslovanje jedne tvrtke ne mijenja godinama, teko je usvojiti nove metode i kanale komunikacije prema potroaima. No, ukoliko ele biti konkurentni na tritu, moraju ih prihvatiti. Putem uspjenih kampanja, koje smo ostvarili s prethodnim klijentima, prikazujemo im to drutvene mree mogu znaiti i za njih.

Koje bi preporuke dali hrvatskim kompanijama kako bi na sto bolji i bezbolniji nacin ojacale svoji brend i svijest kod postojecih i potencijalnih potrosaca. Nako potrebne edukacije i prikupljenih informacija koji bi po vasem misljenju bili najbolji sljedeci potezi nositelja brendova kako bi ojacali svijest potrosaca o brendu? Izrada komunikacijske strategije bi uvijek trebala biti prvi korak za komunikaciju na drutvenim mreama. U njoj se, osim naina komunikacije, definiraju i kljuni parametri koji e se mjeriti, a ovise o tome koji je cilj te komunikacije i razlikuju se od brenda do brenda. Tek nakon dobro postavljenih temelja moe se razviti uspjena komunikacija s korisnicima na drutvenim mreama.